Beautiful Virgin Islands

Sunday, Jul 13, 2025

US Speaker Kevin McCarthy Says Debt Ceiling Talks 'Productive', But No Deal

US Speaker Kevin McCarthy Says Debt Ceiling Talks 'Productive', But No Deal

The White House meeting came after Biden returned from a trip to Asia early to hammer out a deal ahead of the US Treasury's June 1 cut off date for Congress to authorize more borrowing.
A top US Republican on Monday said his first one-on-one talks in months with President Joe Biden to avert a calamitous debt default were "productive" but that there was still no deal.

The White House meeting came after Biden returned from a trip to Asia early to hammer out a deal ahead of the US Treasury's June 1 cut off date for Congress to authorize more borrowing.

"I felt we had a productive discussion. We don't have an agreement yet, but I did feel the discussion was productive in areas (where) we have differences of opinion," House Speaker Kevin McCarthy said after the talks.

McCarthy told reporters that negotiators were going to "work through the night" to move the sides closer and that he and Biden would "talk every day to try to find a way to get this done."

Debt limits are raised periodically to cover repayments on loans that have already been approved and spent, but House Republicans are insisting this time that averting a default must be paired with deep cuts to bring down the country's $31.8 trillion debt.

As they sat down for the meeting, Biden said "I am optimistic we are going to make some progress," adding both sides understood they have "a significant responsibility" to solve the impasse.

'Red line'

The on-again, off-again discussions sputtered through the weekend, with McCarthy's team and White House negotiators meeting for more than two hours on Sunday night and another three on Monday.

Biden and McCarthy also spoke by phone Sunday as the president flew home from a G7 summit in Japan.

Republicans insist on spending less money in fiscal year 2024 than 2023, calling it a "red line."

The White House has offered a freeze for 2024 in exchange for Republicans supporting tax increases for corporations and wealthy Americans but McCarthy has rejected the idea.

The Biden administration has proposed limiting spending on some domestic programs but wants the Pentagon to share in the cuts.

Republicans have pushed for boosted military and border security spending, with major rollbacks to non-defense programs.

Disputes also remain over what a White House official characterized as increasingly hard-line Republican demands for beefed-up work requirements for social welfare programs.

Biden points out that Republicans raised the borrowing cap three times under his predecessor Donald Trump without threatening to default on the country's debt obligations.

If lawmakers fail to raise the borrowing cap, the government will careen into default for the first time in history, with potentially catastrophic results.

Many experts say that in a worst-case scenario global stock markets would melt down as the US economy lurches into a downwards spiral, killing millions of jobs.

June 1 deadline

The president is being pressured by progressives in his party to rely on the US Constitution's 14th Amendment -- which states that the validity of public debt "shall not be questioned" -- to bypass Congress and increase the limit on his own.

But he and Treasury Secretary Janet Yellen cautioned that the courts would not be able to resolve any legal disputes quickly enough to meet the deadline.

Yellen sent a letter to Congress on Monday warning again that the United States could find itself unable to pay its bills as soon as June 1.

Even if McCarthy and Biden can hammer out a broad deal, anything they agree to will need to be shepherded through the House of Representatives, where they face pressure from hardliners on both sides not to make too many concessions.

Further complicating the timeline, the Senate is out this week, while the House is slated to be in recess Friday ahead of Memorial Day weekend.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
×