JUNE 4, 2023:
WASHINGTON (AP) — With just two days to spare, President Joe Biden has signed legislation that lifts the nation’s debt ceiling. That averts an unprecedented default on the federal government’s debt. The Treasury Department had warned that the country would start running short of cash to pay all of its bills on Monday (June 5, 2023), a development that would have sent shockwaves through the U.S. and global economies. To mark the signing, Biden could have held a public ceremony at the White House with lawmakers from both parties, showcasing the bipartisanship he’d cited in an Oval Office address Friday evening. But the president signed the legislation Saturday in private in a reflection of the tight deadline facing the nation.
JUNE 2, 2023:
WASHINGTON (AP) — Fending off a U.S. default, the Senate has given final approval to a debt ceiling and budget cuts package. It’s now on its way to President Joe Biden’s desk to become law before a fast-approaching deadline. The Senate ground through late-night voting Thursday (June 1, 2023) to wrap up work on the hard-fought deal. The compromise package negotiated between Biden and House Speaker Kevin McCarthy leaves neither Republicans nor Democrats fully pleased with the outcome. But the result cuts spending for two years and suspends the debt limit until 2025 after the next presidential election. Biden says he will sign it into law as soon as possible.
JUNE 1, 2023:
WASHINGTON (AP) — After sailing through the House on a bipartisan vote, the debt ceiling and budget cuts package now goes to the Senate. President Joe Biden negotiated the deal with Speaker Kevin McCarthy to avert a U.S. default crisis. They worked to assemble a coalition of centrist Democrats and Republicans to push it to approval. A similar bipartisan effort will be needed in the Senate to overcome opposition. The U.S. was facing a potentially disastrous default in less than a week if Congress failed to act. Despite deep disappointment from hard-right Republicans that budget cuts don’t go far enough, it was approved on a bipartisan House vote with Democrats. The Senate is expected to act quickly by the end of the week.
MAY 31, 2023:
WASHINGTON (AP) — A Republican attempt to expand work requirements for federal food aid in debt legislation moving through Congress would increase federal spending by $2.1 billion over 10 years. That’s far from the cuts GOP lawmakers had envisioned. A compromise on the food aid requirements between House Republicans and President Joe Biden as the nation nears a disastrous government default appears to have backfired for GOP lawmakers, who won the new work requirements in the Supplemental Nutrition Assistance Program for some able-bodied recipients in exchange for dropping work requirements for some more vulnerable recipients such as veterans and homeless people.
MAY 28, 2023:
WASHINGTON (AP) — An “agreement in principle” between President Joe Biden and House Speaker Kevin McCarthy would raise the nation’s legal debt ceiling, but now Congress has only days to approve a package that includes spending cuts and would avert a potentially disastrous U.S. default. The compromise announced late Saturday risks angering both Democratic and Republican lawmakers as they begin to unpack the concessions. Support from both parties will be needed to win congressional approval before a projected June 5, 2023, government default on U.S. debts. McCarthy told reporters Sunday that the agreement “doesn’t get everything everybody wanted,” but that’s to be expected in a divided government.
MAY 25, 2023:
WASHINGTON (AP) — House Republicans are pushing debt ceiling talks to the brink. As they prepare to leave town Thursday (May 25, 2023) for a long Memorial Day recess, it’s a display of risky political bravado. They’re just days out from a potentially devastating debt default if Congress fails to act to raise the borrowing limit. The fallout could hurl the global economy into chaos. Speaker Kevin McCarthy says he’s directing his team to work 24/7 with the White House to solve it. Republicans want a budget-slashing deal with President Joe Biden. But it’s clear the Republican speaker leading a Trump-aligned party whose hard-right flank lifted him to power is now staring down a potential crisis.
MAY 24, 2023, UPDATE:
WASHINGTON (AP) — House Speaker Kevin McCarthy says he’s sending Republican negotiators to the White House to finish out debt limit talks. But he’s warning that the two sides are “still far apart” as they try to reach a budget deal with President Joe Biden. McCarthy says he remains optimistic they can make progress in hopes of an agreement before a deadline as soon as next week. That’s when the Treasury Department could run out of cash to pay its bills. McCarthy is making this pledge: “We’re not going to default.” The White House says Republicans have set in motion a “manufactured crisis” by pushing “extreme proposals” that would hurt “every single part of the country.”
MAY 24, 2023:
WASHINGTON (AP) — President Joe Biden and House Speaker Kevin McCarthy say they and their lead negotiators have had a productive meeting at the White House on the impasse over the government’s debt ceiling. Yet there was no agreement Monday (May 22, 2023) as Washington races to strike a budget compromise and raise the nation’s borrowing limit in time to avert a potentially devastating federal default as soon as next week. Despite the lack of movement toward a possible agreement, both men appeared upbeat as they face a deadline, as soon as June 1, when the government could run out of cash to pay its bills.
MAY 22, 2023:
WASHINGTON (AP) — President Joe Biden and House Speaker Kevin McCarthy have a pivotal meeting coming up on the impasse over the debt ceiling. Washington is racing to strike a budget compromise and raise the nation’s borrowing limit in time to avert a devastating federal default. They’re to meet face to face Monday afternoon (May 22, 2023). After a weekend of start-stop talks, both men appeared upbeat as they face a deadline, as soon as June 1, when the government could run out of cash to pay its bills. Back in the U.S. after the G-7 summit, Biden said his phone call with McCarthy earlier Sunday went well.
MAY 19, 2023:
WASHINGTON (AP) — Debt limit talks came to an abrupt standstill after Republican House Speaker Kevin McCarthy said it’s time to “pause” negotiations. A White House official acknowledged there are “real differences” that are making talks difficult. Wall Street markets were down Friday (May 19, 2023) amid the developments. It’s not clear when the talks will resume. Biden’s administration is racing to strike a deal with Republicans as the nation careens toward a potentially catastrophic debt default if the nation fails to pay its bills. McCarthy says it’s an “easy” problem to resolve by cutting government spending.
MAY 17, 2023:
Extended version:
MAY 16, 2023, UPDATE:
WASHINGTON (AP) — President Joe Biden and top congressional leaders have opened their second meeting on talks over raising the debt limit. Meanwhile, the White House is considering cutting short parts of Biden’s overseas trip that is scheduled to begin later this week. Biden is meeting Tuesday (May 16, 2023) with House Speaker Kevin McCarthy, Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries and Senate Minority Leader Mitch McConnell. Unlike last week’s meeting, Vice President Kamala Harris is participating in Tuesday’s session. “We’re just getting started,” Biden said in brief remarks to reporters ahead of the meeting, being held in the Oval Office.
MAY 16, 2023:
WASHINGTON (AP) — President Joe Biden will discuss the debt limit with House Speaker Kevin McCarthy and congressional leaders at the White House. It’s a high-profile Tuesday afternoon (May 16, 2023) session with reverberations across the globe ahead of the president’s trip to the Group of Seven summit in Japan. Early outlines of a potential deal are beginning to emerge despite the painstakingly slow negotiations. But expectations are low for an agreement as staff talks are expected to continue. McCarthy is prodding Biden to move faster toward a deal. The U.S. Treasury is warning that the U.S. could run out of cash to keep paying the nation’s bills as soon as June 1 if there is no agreement.
MAY 9, 2023:
Extended version:
MAY 8, 2023:
WASHINGTON (AP) — A union of government employees has sued Treasury Secretary Janet Yellen and President Joe Biden to try to stop them from complying with the law that limits the government’s total debt, which the lawsuit contends is unconstitutional. The lawsuit comes just weeks before the government could default on the federal debt if Congress fails to raise the borrowing limit. Financial markets have become increasingly nervous about the potential for default, with economists warning that a failure to raise the debt limit could trigger a global financial crisis. On Tuesday (May 9, 2023), Biden will meet with the top Republicans and Democrats in Congress to seek a potential breakthrough. The two sides remain far apart.
Comments