Joe Biden, Kevin McCarthy meet

US House Speaker Kevin McCarthy (R-CA) (L) seems to be on as US President Joe Biden speaks throughout a gathering on the debt ceiling, within the Oval Office of the White House in Washington, DC, on May 22, 2023.

Saul Loeb | AFP | Getty Images

WASHINGTON — House Speaker Kevin McCarthy stated he had a “productive” and “professional” assembly with President Joe Biden on find out how to elevate the debt ceiling, however that the 2 didn’t attain a deal Monday.

“I think the tone tonight was better than any other night we’ve had discussions,” McCarthy stated outdoors the West Wing following the hourlong assembly.

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The assembly was additionally useful to the negotiating groups who’re hammering out the advanced deal. “It told us in the negotiating team a little more of the details we need to get to a package that can pass Congress,” stated GOP Rep. Patrick McHenry, N.C., who’s negotiating on McCarthy’s behalf.

“To hear the speaker and the president air their views directly with one another, no acrimony, it was productive and it was a meaningful discussion and helpful to us getting a construct that can protect everyone’s equities,” McHenry stated.

McCarthy stated that each groups had been going to “come back together and work through the night” on a compromise deal. “The president and I know the deadline, so I think we’re going to talk every day … until we get this done.”

Ahead of the assembly, Biden emphasised that each males wanted a deal that “we can sell to both sides” of a intently divided, hyper partisan Congress. “We still have some disagreements, but I think we may be able to get where we have to go,” Biden stated initially of a extremely anticipated sit down.

McCarthy shared Biden’s cautious optimism. “I think at the end of the day, we can find common ground, make our economy stronger, take care of this debt, but more importantly, get this government moving again to curb inflation, make us less dependent upon China and make our appropriations system work.”

U.S. President Joe Biden hosts debt restrict talks with House Speaker Kevin McCarthy (R-CA) within the Oval Office on the White House in Washington, U.S., May 22, 2023.

Leah Millis | Reuters

Shortly earlier than the assembly, Treasury Secretary Janet Yellen reaffirmed June 1 because the earliest date the U.S. could possibly be at severe threat of debt default. Yellen’s newest letter to congressional leaders was just like the letters she has despatched all through the spring. But on Monday, there have been two refined variations.

The first was that Yellen characterised a possible debt default in early June as “highly likely,” whereas final week it was merely “likely.” In Monday’s letter, she additionally notably excluded a line from final week, which predicted that the emergency actions Treasury is taking to cowl authorities money owed may prolong the default deadline into June.

“The actual date Treasury exhausts extraordinary measures could be a number of days or weeks later than these estimates,” Yellen wrote in her letter to congressional leaders per week in the past. But by Monday, her obvious optimism had vanished.

McCarthy stated Monday that he believed June 1 to be a stone chilly deadline. He additionally acknowledged that the fact of the legislative course of has began to weigh on his calculus.

“I think we can get a deal tonight, we can get deal tomorrow, but you’ve got to get something done this week to be able to pass it [in the House] and move it to the Senate” in time to meet the June 1 deadline, he stated.

The House is presently scheduled to depart for Memorial Day weekend, however McCarthy stated he would hold the chamber in session so long as he wanted so as to cross a invoice. “We’re going to stay and do our job,” he stated.

McCarthy spoke after three hours of negotiations between White House and House Republican envoys on Monday. One of the GOP negotiators, Rep. Patrick McHenry, R-N.C., later stated he was “concerned about getting a deal that can pass the House, the Senate, and signed by the president.”

US House Speaker Kevin McCarthy (R-CA) speaks to the media as he leaves a gathering on the debt ceiling with US President Joe Biden on the White House in Washington, DC, on May 22, 2023. 

Andrew Caballero-Reynolds | AFP | Getty Images

“It’s a complicated piece of math, it is,” McHenry informed CNN. “We’re at a very sensitive point here, and the goal is to get something that can be legislated into law,” he added.

McHenry was joined within the talks by Rep. Garret Graves, R-La. The White House workforce is comprised of presidential counselor Steve Ricchetti, Office of Management and Budget Director Shalanda Young and legislative affairs director Louisa Terrell.

Yellen has repeatedly warned Congress and the general public that the United States faces a tough deadline to lift the debt ceiling earlier than the start of June.

“We count on to be unable to pay all of our bills in early June, and probably as quickly as June 1,” Yellen had stated Sunday on NBC’s “Meet the Press.”

“My assessment is that the odds of reaching June 15 while being able to pay all of our bills is quite low,” she stated, with the caveat that there would at all times be uncertainty about precise income and funds.

Both Biden and McCarthy have acknowledged that one of many principal sticking factors within the talks stays the query of spending caps, a key GOP demand however a pink line to date for the White House. Raising the debt restrict wouldn’t authorize new spending, however Republicans have insisted on sweeping cuts to authorities outlays as a part of a deal to hike the borrowing restrict.

“The underlying issue here is that Democrats, since they took the majority, have been addicted to spending. And that’s going to stop. We’re going to spend less than we spent last year,” McCarthy stated to reporters Monday morning within the Capitol.

Biden is hoping to achieve a debt restrict deal that will push the subsequent deadline out previous the 2024 presidential election. But House Republicans, who to date have endorsed solely a one-year hike, say that if Biden desires extra time, then he might want to comply with much more cuts.

Biden and McCarthy’s assembly follows a dramatic weekend throughout which talks broke down Friday over an deadlock on authorities spending ranges, however resumed a number of hours later.

The two leaders then spoke by cellphone Sunday night, a dialog they described as “productive.”

Over the weekend, the president faulted Republicans for demanding that massive chunks of federal discretionary spending be exempted from their proposed topline price range cuts, together with protection and doubtlessly veterans well being advantages.

If these classes had been really to be exempted, Biden defined, then cuts to all the opposite discretionary spending would must be a lot deeper so as to make up the distinction.

Across-the-board cuts like these “make absolutely no sense at all,” Biden stated Sunday in Japan, the place he was attending the Group of Seven Summit. “It’s time for Republicans to accept that there is no bipartisan deal to be made solely, solely, on their partisan terms.”

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