Republicans are seeking to drastically limit government spending over the next 10 years to slow the growth of US debt. Social protection programs remain a stumbling block. Republicans want to tighten requirements for the Medicaid health plan and the SNAP Supplemental Food Assistance program for the poor. Democrats say it will create additional hurdles for people who are already struggling to make ends meet. Both programs have grown significantly during the COVID-19 pandemic, but have been scaled back in recent months.
Republican House Speaker Kevin McCarthy said on Saturday he had made “progress” in talks with Democratic President Joe Biden to raise the federal government’s debt ceiling.
For his part, despite the remaining differences, President Joe Biden remains optimistic, noting that the agreement is “very close”. The parties have reached an agreement in principle that will raise the debt ceiling by an amount sufficient to cover the country’s borrowing needs ahead of the November 2024 presidential election.
Treasury Secretary Janet Yellen said earlier that the deadline for a decision on the national debt limit had been pushed back to June 5. This will most likely lead to negotiations dragging on for another week.
Failure by Congress to raise the debt ceiling by June 5 could lead to a default that will shock financial markets and plunge the United States into a deep recession. In his strong warning, Yellen noted that failure to make a timely decision “would create serious hardship for American families, harm our position as a global leader, and call into question our ability to protect security interests.” national”.
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