Debt ceiling negotiators rushing for weekend deal, but much work remains
Associated Press
23-05-18 18:19
White House negotiators have had two days of talks with House Speaker Kevin McCarthy and his emissaries over finding a budget-cutting deal that Democrats and Republicans can agree on to raise the US debt limit of $31tn, with a deadline as soon as 1 June drawing closer. In exchange for the limit rise, Republicans want steep spending reductions, devastating cuts inflicting hardships on many Americans, Democrats argued. The parties are racing to devise a budget-cutting deal to avert a looming economic crisis. The contours of a deal that includes some budget cuts, rescinding COVID-19 money that went unused, and a way to discuss new permitting rules for swift energy project developments are taking shape. Republicans want to roll back spending to fiscal 2022 levels and cap annual increases at just 1% over the next decade, leaving out Defense and Veterans accounts. One area both sides agree on is to claw back some $30bn in unspent COVID-19 funds, while Republicans want to attach policy priorities to any deal.