U.S. President Joe Biden and a Republican negotiator revealed yesterday, Friday, that they are working towards an agreement to raise the government’s debt ceiling of $31.4 trillion, after the Treasury Department warned that default looms on June 5 without action. Biden told reporters, "Things look good. I am optimistic."
For his part, Republican Congressman Patrick McHenry agreed with Biden's comments but cautioned that negotiations are not yet finished. Both made their statements separately shortly after U.S. Treasury Secretary Janet Yellen said the government would be unable to secure the funds needed to pay its bills by June 5.
Negotiators are discussing a deal that would raise the limit for two years, but they remain at odds regarding whether to tighten work requirements for some anti-poverty programs. An American official mentioned that negotiators have preliminarily agreed on a plan that would limit spending on several government programs next year.
CNN reported that House Speaker Kevin McCarthy left the Capitol yesterday after a conference call in which he informed one of his senior Republican aides that no agreement had been reached.
The two sides have been negotiating for weeks on a deal to raise the federal government's borrowing limit, with Republicans also pushing for significant spending cuts. Without an agreement, the United States could face a default with catastrophic consequences.
Any agreement must receive approval in the Republican-controlled House of Representatives and the Democrat-led Senate before Biden can sign it into law, a process that could take over a week.
