"Each day I feel closer and better" : McCarthy optimistic on deal to avert US default
Speaker of the US House of Representatives Kevin McCarthy said on Saturday struck an optimistic note on negotiations with Democratic President Joe Biden aimed at raising the federal government's debt ceiling, as the nation faced risk of default in little more than a week.
"Each day I feel closer and better," McCarthy told reporters at the US Capitol, though he said the two sides have not yet reached a deal.
Time is tight. The Treasury Department on Friday said the government would run short of funds to pay all its bills on June 5 without congressional action, a slightly later but firmer deadline than its prior forecast of default as early as June 1.
And any deal in principle between Biden and House of Representatives Speaker McCarthy will be the start of what could easily be a week-long process of shepherding legislation through the narrowly and bitterly divided Congress.
Hardline Republicans have threatened to block any bill that does not meet their expectations, including sharp spending cuts.
Progressive Democrats have also threatened to withhold support for some of the compromises raised, particularly around imposing new work requirements on federal anti-poverty programs.
Republicans control the House by a 222-213 margin, while Democrats hold a 51-49 Senate majority, leaving a narrow path to pass any agreement by the Democratic president and Republican speaker into law.
Republicans have sought to curb government spending sharply over the coming 10 years to slow the growth of the US debt, which is now equal to the annual output of the economy.
The two sides have tentatively reached an agreement that would raise the debt ceiling by enough to cover the country's borrowing needs through the November 2024 presidential election.
It would boost spending on the military and veterans' care, and cap spending for many discretionary domestic programs, according to sources familiar with the talks.
McCarthy said Republicans were also still pushing for reforms to energy permitting, including making it easier to drill for gas and oil.
Republicans have rejected Biden's proposed tax increases, and neither side has shown a willingness to take on the fast-growing health and retirement programs that will drive up debt sharply in the coming years.
Reuters
