Debt ceiling explained: What to know about the showdown in Washington as default looms

House Speaker Kevin McCarthy, R-Calif., said Friday that negotiators were working to “finish the job” and seal a deal before the United States runs out of cash to pay its bills. Republicans worked through the night with the White House to find agreement on spending cuts that GOP lawmakers have demanded in exchange for raising the debt limit.“I thought we made progress yesterday,” he said. “I want to make progress again today. And I want to be able to solve this problem.

The Republicans say the nation’s debt, now at $31 trillion, is unsustainable. They also want to attach other priorities, including stiffer work requirements on recipients of government cash aid, food stamps and the Medicaid health care program. Democrats oppose those requirements. The repercussions would be broad. Mark Zandi, chief economist at Moody’s Analytics, said that “no corner of the global economy will be spared.”

Biden has publicly kept the door open to some discussion over work requirements. But House Republicans say the White House is balking at their proposals. There are other policy priorities under consideration, as well, including steps to improve the electrical grid and speed the permitting of construction and development of energy projects. While members of both parties favor those ideas, Republicans and Democrats haven’t always agreed on how to resolve it.

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