McCarthy reports no debt ceiling agreement yet, despite improved atmosphere following tensions.

Debt Ceiling Deal Still Elusive 10 Days Before X-Date

House Speaker Kevin McCarthy (R-CA) and President Joe Biden have yet to reach a debt ceiling deal, with only 10 days left before the Treasury Department predicts the country could default on its loans. Despite a productive 90-minute meeting at the White House, the two leaders have yet to agree on passing a bill raising the debt ceiling without spending cuts, increasing taxes, and tinkering with the Pentagon’s budget. Treasury Secretary Janet Yellen updated her “X-date” projection, when the federal government can no longer pay its already accrued bills, from “likely” to “highly likely” as early as June 1. Both men remain confident about the prospect of a bipartisan debt ceiling deal, with McCarthy stating that the tone of Monday’s meeting “was better than any other time we’ve had discussions” despite “philosophical differences.”

Productive Meeting

McCarthy told reporters that the discussion was productive, and the staffs will continue to get back together. Biden described it as a “productive meeting” in a statement afterward. “We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement,” he said.

Agreement Needed This Week

McCarthy dismissed concerns he could face a speakership challenge over a bipartisan debt ceiling deal, instead underscoring the importance of reaching an agreement “this week to be able to pass it and move it to the Senate” but noted “nothing’s agreed to” yet. “If you come to an agreement, it takes time to write it,” the speaker said. “In the House, we changed the rules so we make sure you get 72 hours so everybody can read it. Then you pass it in the House and you send it to the Senate. I think the Senate could probably act faster than I thought in the past, but we’re going to need a couple of days.”

Areas of Disagreement

McCarthy said that despite “philosophical differences,” both men agreed on the areas of disagreement and want to come to an agreement. “We’re pretty well divided in the House, almost down the middle, and it’s not that different in the Senate, so we’ve got to get something we can sell to both sides,” Biden added earlier in the Oval Office.

X-Date Projection

Treasury Secretary Janet Yellen updated her “X-date” projection, when the federal government can no longer pay its already accrued bills, from “likely” to “highly likely” as early as June 1.

Conclusion

With only 10 days left before the Treasury Department predicts the country could default on its loans, House Speaker Kevin McCarthy (R-CA) and President Joe Biden have yet to reach a debt ceiling deal. Despite a productive 90-minute meeting at the White House, the two leaders have yet to agree on passing a bill raising the debt ceiling without spending cuts, increasing taxes, and tinkering with the Pentagon’s budget. Both men remain confident about the prospect of a bipartisan debt ceiling deal, with McCarthy stating that the tone of Monday’s meeting “was better than any other time we’ve had discussions” despite “philosophical differences.”