White House debt ceiling offer would cap spending for 2 years, rescind unspent COVID funds

— The White House has made an offer to House Republicans that would cap discretionary spending at fiscal year 2023 levels for two years and rescind up to $30 billion in unspent COVID-19 relief funds in exchange for an extension of theThe offer is the latest sign that the two sides could be inching closer to an agreement that would avert a government default, an unprecedented event that would have wide-ranging impacts on the global economy.

Negotiations between the White House and McCarthy's representatives continued on Friday, with some indications that a deal was in sight. On Thursday morning, McCarthy said negotiators worked"well past midnight" the night before, and said he directed his negotiating team to work"24/7" to reach an agreement.

Treasury Secretary Janet Yellen has warned the U.S. could default and be unable to pay its bills as soon as early June, and it will take some time for any negotiated deal to pass both chambers of Congress. Lawmakers are leaving Washington, D.C., for the Memorial Day recess, although congressional leaders have warned them to be ready to return on short notice.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

White House says McCarthy 'beholden' to far-right Republicans on debt limit, source saysThe Biden administration is painting House Speaker Kevin McCarthy as talking out of both sides of his mouth amid the debt ceiling standoff.
Source: ABC - 🏆 471. / 51 Read more »

White House believes up to 100 Dem votes may be needed on debt ceiling dealThe prospect of needing so many votes from within the party has begun to color Biden's negotiating strategy.
Source: politico - 🏆 381. / 59 Read more »