Debt ceiling talks were set to resume Sunday evening as Washington races to strike a budget compromise along with a deal to raise the nation's borrowing limit and avert an economy-wrecking federal default.
U.S. President Joe Biden and House Speaker Kevin McCarthy spoke by phone Sunday while the president was returning home on Air Force One after the Group of Seven summit in Japan. Upbeat, McCarthy, R-Calif., told reporters at the Capitol that the call was "productive" and that the on-again, off-again negotiations between his staff and White House representatives are focused on spending cuts.
"We're looking at, how do we have a victory for this country?" McCarthy said. He said he did not think the final legislation would remake the federal budget and the country's debt, but at least "put us on a path to change the behavior of this runaway spending." Biden had been scheduled to travel from Hiroshima to Papua New Guinea and Australia, but cut short his trip in light of the strained negotiations with Capitol Hill.
A compromise on those topline spending levels would enable McCarthy to deliver for conservatives, while not being so severe that it would chase off the Democratic votes that would be needed in the divided Congress to pass any bill. The White House has countered by keeping defense and nondefense spending flat next year, which would save $90 billion in the 2024 budget year and $1 trillion over 10 years.
Republicans had also rejected various White House revenue proposals. Among the proposals the GOP objects to are policies that would enable Medicare to pay less for prescription drugs. Republicans also have refused to roll back Trump-era tax breaks on corporations and wealthy households as Biden's own budget has proposed.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Debt ceiling talks to resume as Biden, McCarthy prepare to meet Monday to resolve standoffWASHINGTON (AP) — The White House and House Republicans wrapped up another round of debt ceiling talks Sunday as Washington races to strike a budget compromise…
Read more »
Opinion: This U.S. debt ceiling standoff isn’t like before – economic disaster could happenThe current standoff over the U.S. debt ceiling isn’t like before – ironically, this current complacency about it could cause something dangerous
Read more »
Cloudy Saturday, sunny SundayShowers or drizzle today, but sun tomorrow
Read more »
Biden meets with Indo-Pacific leaders at G7 summit while confronting stalemate over U.S. debt limitU.S. President Joe Biden sought Saturday to rally regional cooperation against China on the margins of the Group of Seven summit while confronting a stalemate in Washington over how to ensure the U.S. avoids default.
Read more »
Biden aims to reassure world on U.S. debt standoff as he consults with Indo-Pacific leadersBiden opened his third day in Japan at the annual Group of Seven meeting of the world’s most powerful democracies with a briefing from his staff on the latest fits and starts in talks over how to raise the federal debt limit
Read more »