List of All Articles with Tag 'us politics'

If the US is not able to pay all its bills for the first time ever, senior citizens could quickly feel the pain.

Investors and the public have been content to largely brush off the slow-motion Washington march toward a self-imposed economic catastrophe.

Negotiations are continuing to unfold in an attempt to reach a debt limit deal, but major differences between House Republicans and the White House have yet to be bridged, and the pressure is only intensifying as the risk of default grows ever more real with each day.

The Biden administration's one-time student loan forgiveness program is facing a fresh threat from House Republicans while it awaits a ruling from the Supreme Court about whether the proposal can take effect.

Debt ceiling negotiations are locked on a classic problem that has vexed, divided and disrupted Washington before: Republicans led by House Speaker Kevin McCarthy want to roll back federal government spending, while President Joe Biden and other Democrats do not. Time is short to strike a deal before a deadline as soon as June 1, when the Treasury says the government risks running out of cash to pay its bills. Negotiators are expected to convene Wednesday for another round of talks as frustration mounts. The political standoff is edging the country closer to a crisis, roiling financial markets and threatening the global economy. “They’ve got to acknowledge that we’re spending too much,” said McCarthy. Cheered on by a hard-charging conservative House majority that hoisted him to power, McCarthy, R-Calif., was not swayed by a White House counter-offer to freeze spending instead. “A freeze is not going to work,” McCarthy said. The longstanding Washington debate over the size and scope of the federal government now has just days to be resolved. Failure to raise the nation's debt ceiling, now at $31 trillion, would risk a potentially chaotic federal default, almost certain to inflict economic turmoil at home and abroad. From the White House, press secretary Karine Jean-Pierre said it was “ridiculous” to suggest Biden wasn’t acting with urgency after Republicans complained about the pace. “He wants to see this done as soon as possible,” she said. Dragging into a third week, the negotiations over raising the nation's debt limit were never supposed to arrive at this point. The White House insisted early on it was unwilling to barter over the need to pay the nation’s bills, demanding that Congress simply lift the ceiling as it has done many times before with no strings attached. But the newly elected speaker visited Biden at the Oval Office in February, urging the president to come to the negotiating table on a budget package that would reduce spending and the nation’s ballooning deficits in exchange for the vote to allow future debt. “I told the president Feb. 1," McCarthy recounted. "I said, Mr. President, you’re not going to raise taxes. You've got to spend less money than was spent this year.” Negotiations are focused on finding agreement on a 2024 budget year limit. Republicans have set aside their demand to roll back spending to 2022 levels, but say that next year’s government spending must be less than it is now. But the White House instead offered to freeze spending at current 2023 numbers. “We are holding firm to the speaker’s red line,” said a top Republican negotiator, Rep. Garret Graves of Louisiana. “Which is that we will not do a deal unless it spends less money than we’re spending this year.” By sparing defense and some veterans accounts from reductions, the Republicans would shift the bulk of spending reductions to other federal programs, an approach that breaks a tradition in Congress of budget cap parity. Graves said there were still “significant gaps” between his side and the White House. Agreement on that topline spending level is vital. It would enable McCarthy to deliver spending restraints for conservatives while not being so severe that it would chase off the Democratic votes that would be needed in the divided Congress to pass any bill. But what, if anything, Democrats would get if they agreed to deeper spending cuts than Biden's team has proposed is uncertain. Asked what concessions the Republicans were willing to give, McCarthy quipped, “We’re going to raise the debt ceiling.” The White House has continued to argue that deficits can be reduced by ending tax breaks for wealthier households and some corporations, but McCarthy said he told the president at their February meeting that raising revenue from tax hikes is off the table. The negotiators are now also debating the duration of a 1% cap on annual spending growth going forward, with Republicans dropping their demand for a 10-year cap to six years, but the White House offering only one year, for 2025. Typically, the debt ceiling has been lifted for the duration of a budget deal, and in this negotiation the White House is angling for a two-year agreement that would push past the presidential elections. Past debt ceiling talks have produced budget agreements in which both parties have won some concessions in a give and take. Both have wanted to raise the debt limit to prevent a economy-shattering federal default. Graves explained the Republican position this time around. Since Biden already boosted federal spending in significant ways with his COVID-19 rescue package, Inflation Reduction Act and other bills, “they've already got theirs.” “We’re willing to give them an increase in debt ceiling. That’s what they’re getting,” he said. And yet, the Republicans are pushing additional priorities as the negotiators focus on the $100 billion-plus difference between the 2022 and 2023 spending plans as a place to cut. Republicans want to beef up work requirements for government aid to recipients of food stamps, cash assistance and the Medicaid health care program that the Biden administration says would impact millions of people who depend on assistance. All sides have been eyeing the potential for the package to include a framework to ease federal regulations and speed energy project developments. They are all but certain to claw back some $30 billion in unspent COVID-19 funds now that the pandemic emergency has officially lifted. The White House has countered by keeping defense and nondefense spending flat next year, which would save $90 billion in the 2024 budget year and $1 trillion over 10 years. The House speaker promised lawmakers he will abide by the rule to post any bill for 72 hours before voting, making any action doubtful until the weekend — just days before the potential deadline. The Senate would also have to pass the package before it could go to Biden's desk to be signed. McCarthy faces a hard-right flank in his own party that is likely to reject any deal, and that has led some Democrats to encourage Biden to resist any compromise with the Republicans and simply invoke the 14th Amendment to raise the debt ceiling on his own, an unprecedented and legally fraught action the president has resisted for now. ___ Associated Press writers Farnoush Amiri, Stephen Groves, Kevin Freking, Chris Megerian, Darlene Superville and Mary Clare Jalonick contributed to this report. Read More Ukraine war’s heaviest fight rages in east - follow live Charity boss speaks out over ‘traumatic’ encounter with royal aide Just in case: Anxious retirees, social service groups among those making default contingency plans Marjorie Taylor Greene pays $100k for chapstick used by Kevin McCarthy Debt ceiling talks grind on, but Republicans say there's a 'lack of urgency' from White House

The debt ceiling snafu, which has the potential to wreck the US economy, is a civics lesson in the bizarrely inefficient way the American government spends your money.

The clock is ticking for President Joe Biden and House Speaker Kevin McCarthy to come to agreement to avoid a first-ever default on the nation's debt. And although there are some positive signs suggesting they're closer to a consensus, there is still no deal.

President Joe Biden on Monday said he was “optimistic” about the chances of finding an agreement with the Republican-led House of Representatives that would avoid a catastrophic default on America’s sovereign debt. Speaking at the outset of a crucial meeting with House Speaker Kevin McCarthy, Mr Biden said the source of his optimism was a shared agreement between the two men that a debt default is “off the table”. Mr Biden also said the consequences that would arise should the US fail to meet its’ outstanding debt obligations would be “a kick in the ... economic well-being” for the American people. The negotiating session between the president and House speaker comes with just ten days remaining before the US Treasury is set to lose the ability to pay its’ bills by issuing new bonds. In a letter to Congress, Treasury Secretary Janet Yellen said on Monday that “it is highly likely” that the Treasury would run out of operating funds in the event that Congress does not raise the department’s statutory debt limit. A default on America’s sovereign debt would be a financial catastrophe both for Americans and people around the world who rely on US financial stability. Mr Biden said he and Mr McCarthy “talked about the need for bipartisan agreement” and stressed that he was “optimistic” that he and Mr McCarthy were “going to make some progress” during the Monday evening session. For his part, the House Speaker said he and Mr Biden had a “very productive” conversation during a phone call held on Sunday while Mr Biden was returning to Washington from the G7 summit aboard Air Force One. Earlier in the day, Mr McCarthy told reporters at the Capitol that “decisions have to start being made” on spending for the next fiscal year since “we’re 10 days out” from the debt ceiling deadline. “We have to spend less next year than we spent this year,” he said before pointing to the House’s proposal for spending cuts as the “framework” for a deal. “I’m hopeful,” he added. Read More Watch live: Biden and McCarthy meet to discuss US debt ceiling Who is Tim Scott? 5 things to know about the newest 2024 GOP presidential candidate A timeline of Donald Trump’s rivalry with Ron DeSantis

Sen. Tim Scott announced he's running for the Republican nomination for president on Monday, setting up a challenge to former President Donald Trump, the current frontrunner.

House Republicans are insisting on spending cuts before they will agree to raise the nation's debt ceiling past $31 trillion.

The countdown is on, the stakes are high -- and there is still no debt limit deal.

America is heading close to the brink of a self-imposed economic disaster with the Republican-led House refusing to pay the country's debts unless President Joe Biden agrees on cuts to current and future spending and new curbs on social programs.