Debt negotiations hit a snag as the country gets closer to a possible default

May 19, 2023 / 9:38 am

caption: Speaker of the House Kevin McCarthy, R-Calif., talks to reporters at the U.S. Capitol on Wednesday. Negotiations between his team and the White House over the debt ceiling broke down on Friday.

Talks between the White House and House Speaker Kevin McCarthy's team on raising the nation's debt ceiling have been paused for now, according to two Republican sources familiar with the status of the negotiations. A White House official confirmed the stalemate.

The pause comes as President Biden is in Japan for the G-7 summit. Before he left Tuesday, he said he was confident that he could reach a deal on spending with McCarthy that would pass through Congress.

The White House official, who spoke on the condition of anonymity about these closed-door negotiations, told NPR a deal is still possible, but said both sides have to negotiate in good faith and recognize they won't get everything they want.

"There are real differences between the parties on budget issues and talks will be difficult. The president's team is working hard towards a reasonable bipartisan solution that can pass the House and the Senate," the official said.

Biden and McCarthy met at the White House earlier this week with other top congressional leaders, and both expressed optimism they could reach a deal and avoid an unprecedented debt default.

"We're going to come together because there's no alternative," Biden told reporters before leaving for the summit.

Biden had said he would be "in constant contact" with aides while in Japan and would stay in touch with McCarthy and other leaders as well. He also announced earlier this week he would cut his trip short to finish talks; he returns on Sunday.

Asked earlier whether he would accept new work requirements for some programs, Biden reiterated that he would not accept any that impact Medicaid – or, for other programs, cuts that go substantially beyond what currently exist.

U.S. Treasury Secretary Janet Yellen has said the U.S. could run out of cash to pay its bills "potentially as early as June 1," if Congress does not raise or suspend the debt limit before that time.