Debt ceiling talks: Status update before default deadline.

Debt Ceiling Negotiations: Where Things Stand

The House is on recess, and Republican negotiators left the Capitol late Thursday night without a finalized deal on the debt ceiling. Still, several officials have indicated they’re closing in on a deal, expressing optimism they can get something worked out before the default deadline in six days.

Despite the looming deadline, negotiators are making progress on a deal to raise the debt ceiling and cut spending. Leaked details of the proposed agreement show that both parties are working to meet each other’s demands. However, there are still some sticking points that need to be resolved before a final deal can be reached.

What’s in the Proposed Deal?

WHITE HOUSE NOT BUDGING ON WORK REQUIREMENTS, CAUSING AN IMPASSE IN NEGOTIATIONS

The proposed deal would lift the debt ceiling for the next two years while keeping defense spending at the levels proposed by President Joe Biden. This would allow Republicans to say they reduced federal spending, while Democrats can say they salvaged key domestic programs, such as military and veterans’ benefits, from experiencing drastic cuts. The final deal is also expected to include incentives for lawmakers to pass all 12 of its annual spending bills by the end of the year.

Sticking Points Remain

Despite the progress made, there are still some sticking points that need to be resolved. One of the main issues is work requirements for welfare programs, which House Republicans are trying to put in the debt ceiling bill. This is a nonstarter for the White House and could prevent a final deal from being reached.

Rank-and-File Lawmakers Unhappy with Details

Even if a deal is reached, party leaders will need to sell the agreement to rank-and-file lawmakers. However, several lawmakers on both sides of the aisle have already expressed their opposition to the deal, with some threatening to vote against it if it doesn’t meet their demands.

What Comes Next?

Negotiators are hoping to finalize a deal by the end of Friday or Saturday at the latest. After that, lawmakers will take one or two days to write the legislation. The earliest a vote could take place in the House is Wednesday, just one day before the default deadline. After that, the legislation will be passed to the Senate, where it could take a few days before it’s passed and sent to Biden’s desk for his signature.

With the clock ticking, it remains to be seen whether a deal can be reached in time to avoid a default. Stay tuned for updates.

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