Democrats and Republicans “close” to a debt ceiling deal

United States debt ceiling deal

The White House and the Republicans in the United States Congress are “close” to reaching an agreement on the debt ceiling, while the deadline for the country to avoid a suspension of payments approaches, he said on Thursday (05.25.2023) a Republican close to the negotiations.

The source noted that the negotiating parties, which include Joe Biden government officials and Republican lawmakers, could announce the deal as soon as Friday, according to various US media reports.

The possible deal would raise the debt ceiling for two years and impose maximum discretionary government spending, except for military or veterans’ affairs, The New York Times reported.

As he left the Capitol on Thursday night, the main Republican leader in Congress, Kevin McCarhty, said that an agreement had not yet been reached and that negotiations with the White House “are not easy.”

For its part, the White House reiterated its message on Thursday that a suspension of payments “is not on the table,” spokeswoman Karine Jean-Pierre said at a press conference.

The White House press officer also stressed that “the only option” to raise the debt ceiling is for Congress to reach an agreement, refusing to answer a question from the press about whether the White House has a plan B.

Unlike most countries, the United States can only borrow up to the limit set by Congress – the debt ceiling – which requires legislative agreement each time the country needs to raise it to pay off its debts.

The current debt ceiling of $31.4 trillion was reached in January, and the country could find itself in default as soon as June 1 if Democrats and Republicans do not reach an agreement to raise it sooner.

The Republicans in the Lower House, led by McCarthy, want an agreement to reduce public spending and criticize the government of Democrat Joe Biden for not having previously sought an agreement on the debt ceiling.

Negotiations are advancing against the clock, since June 1 is the deadline by which, according to the Treasury Department, the US will run out of reserves.