White House optimistic about debt ceiling deal despite negotiation setbacks.

The White House is optimistic about reaching an agreement on raising the nation’s debt ceiling and preventing a default on the national debt. President Joe Biden and House Speaker Kevin McCarthy had a productive meeting on Monday, and the White House negotiators met for hours and will be returning to give the president an update, according to Karine Jean-Pierre, White House press secretary.

Sticking Points

• Republicans want to limit the total of 2024 federal discretionary spending to the 2022 level
• Limit spending increases to 1 percent annually
• Increase work requirements for some recipients of Medicaid and the Supplemental Nutritional Assistance Program
• Claw back unspent COVID-19 funds
• Loosen permitting requirements for oil and gas

Rep. Patrick McHenry indicated that significant differences on spending remain, suggesting that at least one item is still a sticking point.

Non-Negotiable Items

House Speaker Kevin McCarthy considers only two items non-negotiable. “From the first day I sat with the president, there have been two criteria. I told him we’re not going to raise taxes, and we’re not going to pass a clean debt ceiling,” McCarthy said at a May 22 press conference. “Everything else is open for negotiation. But at the end of the day, it has to fit in that place.”

When asked whether Democrats have a “spending problem,” as McCarthy indicated in comments on May 22, Jean-Pierre simply said, “No.”