Debt ceiling talks stuck on spending cuts with deadline approaching.

Debt Limit Talks Stall Over Federal Spending Limits

As the June 1 deadline for raising the U.S. debt limit approaches, negotiations have hit a snag over federal discretionary spending limits for 2024.

The White House negotiators, Steve Ricchetti and Shalanda Young, have been meeting with Republican Representatives Garret Graves and Patrick McHenry to try and reach an agreement.

Republicans are pushing for the provisions of their Limit, Save, Grow Act to be enacted in exchange for raising the debt limit. The bill aims to limit federal discretionary spending to the 2022 level, increase work requirements for some recipients of Medicaid and SNAP, claw back unspent COVID-19 funds, and loosen permitting requirements for oil and gas.

However, negotiations have hit a roadblock, with McHenry and Graves stating that the two sides remain far apart. Graves has said that there are fundamental disagreements on spending, while McHenry theorizes that the White House negotiators may be hamstrung by boundaries laid down by the president.

Key Provisions of the Limit, Save, Grow Act:

• Limit total 2024 federal discretionary spending to 2022 level
• Limit spending increases to 1% annually
• Increase work requirements for some Medicaid and SNAP recipients
• Claw back unspent COVID-19 funds
• Loosen permitting requirements for oil and gas

It remains to be seen whether an agreement can be reached before the June 1 deadline.