After debt ceiling talks between the White House and House Republicans stalled last week while President Biden was in Hiroshima for the G7 economic summit, the president and Speaker of the House Kevin McCarthy met on Monday where both said the discussions were productive, the Associated Press reported.
Time is running out to agree to a deal on the debt ceiling which could be reached as soon as June 1, according to Treasury Secretary Janet Yellen.
While both Biden and McCarthy praised each other for their seriousness in Monday’s talks, the White House and Republicans remain at odds on how to cut annual budget deficits. Republicans passed a debt ceiling measure that included cutting spending, while the president’s team only offered to hold spending at the current levels.
Meanwhile, the president wants to address budget shortfalls by raising taxes on corporations and wealthy Americans. However, Speaker McCarthy has already ruled that out.
The White House released a statement describing the meeting as productive and said the president, Speaker McCarthy, and their negotiators “will continue to discuss the path forward.”
McCarthy told reporters after Monday’s Oval Office Meeting that the meeting was upbeat and the negotiators would continue to work “through the night” to reach a deal. He emphasized that it is wrong for the government to continue spending more money.
The negotiations are centered on reaching a compromise over a 2024 budget year spending cap. Republicans are insisting that next year’s spending be lower than it is this year while the White House is only offering to keep 2024 spending at the current levels.
In the bill passed by the House, Republicans proposed dropping spending to 2022 levels.
McCarthy told reporters on Capitol Hill Monday evening that negotiations will “find a baseline” on which Republicans can agree that reduces 2024 spending to less than 2023.