McCarthy foresees debt ceiling agreement in House next week.

House Speaker Kevin McCarthy Expects Deal on Debt Ceiling

House Speaker Kevin McCarthy (R-Calif.) has announced that he expects to bring a deal on raising the federal debt ceiling before the House next week. This positive tone marks a change for the Speaker, who had previously been hesitant to express optimism about reaching an agreement with President Joe Biden on raising the debt ceiling, along with spending caps and other provisions demanded by Republicans.

Negotiators in a “Much Better Place”

McCarthy has stated that negotiators are now in a “much better place,” and he can see where a deal can come together. The working group, which includes Steve Ricchetti, counselor to the president, and Shalanda Young, director of the Office of Management and Budget, Rep. Garret Graves (R-La.), and unnamed members of McCarthy’s staff, are still in talks over the spending caps, and the amount and duration of an increase or suspension to the debt limit.

• The working group has met daily since May 16.
• The president also voiced optimism that a deal was in the offing before his departure on May 17 for the G7 Summit in Japan.

Months-Long Standoff

The president and the Speaker had been in a months-long standoff over raising the nation’s $31.4 trillion borrowing limit. Biden had refused to negotiate over raising the limit, saying that it would jeopardize the full faith and credit of the United States.

However, with negotiations ongoing and both sides expressing optimism, it seems that a deal may finally be within reach.