House Speaker Kevin McCarthy said Friday that negotiators are “moving” to reach a deal with the White House to raise the debt deadline as they rush to make a final deal ahead of schedule. to limit potentially catastrophic payment defaults.
However, McCarthy told reporters on Capitol Hill that there was still work to be done. The United States could face a new default payment as early as June 1, potentially wreaking havoc on the global economy.
The two sides are nearing a two-year deal that will cut federal spending and raise the borrowing limit before the June 1 deadline, when the Treasury could run out of money to pay the nation’s bills.
President Joe Biden and top Republican lawmakers are hoping to reach a budget compromise this weekend. Any political agreement must be compromised, with the support of both Democrats and Republicans, before being approved in a full session of Congress.
A person familiar with the talks said the two parties are “deep down” on whether or not Republicans agree on demands to impose stricter work requirements on people receiving food stamps, financial assistance and Medicare, among others. America’s most vulnerable.
Heading into the weekend, however, both Biden and McCarthy expressed hope that they could close the gap between the positions. The two-year deal would raise his debt to a period that would extend beyond the 2024 presidential election.
WHY THE AGREEMENT WAS NOT REACHED
The vote to increase the debt limit allows the Treasury Department to continue borrowing money to pay the country’s already high bills.
Although it is used once as a procedure in Congress, the most recent votes are used for political pressure, when the initiative is mandated for approval, other priorities can be added to it.
House Republicans, given the majority in the House, do not want to lift the debt limit unless Biden and the Democrats impose restrictions on federal spending and spending in the future.
Republicans say the national debt, which is now at $31 trillion, is unsustainable. They also want to add to other priorities, such as stricter work requirements for recipients of government cash assistance, food stamps and the Medicaid health care program. Many of the democrats are against these requirements.
Biden stated that the debt term should be approved without major commitments, so that the United States will always pay its debts and that the debt default is not negotiable.
But as the June 1 deadline approached, when the Treasury said it was running out of money, Biden began dealing with Republicans.
WHAT IF THE DEBT COVER IS NOT EXTENDED?
It is a new government year and the economy of the country must be devastated. Yellen and economists said it could be “exceptional.”
There is no need for developers, who is created for. But it would have an internet redundancy.
Yellen said she would destroy the business market and businesses, and that millions of families who depend on federal government payments “could get their necessities back,” including Social Security recipients, veterans and military families.
More than 8 million people could lose their jobs, according to government officials’ estimates. The economy is going into recession.
“A default could cause widespread pain as Americans lose the income they need to survive,” he said. Disruptions in federal government operations could affect “aircraft and airspace security, border security and national defense, and food security.”