List of All Articles with Tag 'us politics'

For weeks, Treasury Secretary Janet Yellen has been consistently telling lawmakers to act soon because the X-date, when the US could default, could occur as soon as June 1. Now, with June 1 days away, everyone is hoping for a reprieve and that the X-date will slip.

Work requirements for federal food aid recipients have emerged as a final sticking point in negotiations over the looming debt crisis, even as President Joe Biden said Friday that a deal is “very close.” Biden’s optimism came as the deadline for a potentially catastrophic default was pushed back to June 5 and seemed likely to drag negotiations between the White House and Republicans over raising the debt ceiling into another frustrating week. Both sides have suggested one of the main holdups is a GOP effort to boost work requirements for recipients of food stamps and other federal aid programs, a longtime Republican goal Democrats have strenuously opposed. Even as they came closer to a framework on spending, each side seemed dug in on the work requirements. White House spokesman Andrew Bates called the GOP proposals “cruel and senseless” and said Biden and Democrats would stand against them. Louisiana Rep. Garret Graves, one of House Speaker Kevin McCarthy’s negotiators, was blunt when asked if Republicans might relent on the issue: "Hell no, not a chance,” he said. The later “ X-date,” laid out in a letter from Treasury Secretary Janet Yellen, set the risk of a devastating default four days beyond an earlier estimate. Still, Americans and the world uneasily watched the negotiating brinkmanship that could throw the U.S. economy into chaos and sap world confidence in the nation’s leadership. Yet Biden was upbeat as he left for the Memorial Day weekend at Camp David, declaring, “It’s very close, and I’m optimistic.” With Republicans at the Capitol talking with Biden’s team at the White House, the president said: “There’s a negotiation going on. I’m hopeful we’ll know by tonight whether we’re going to be able to have a deal.” But a deal had not come together when McCarthy left the Capitol Friday evening. In a blunt warning, Yellen said failure to act by the new date would “cause severe hardship to American families, harm our global leadership position and raise questions about our ability to defend our national security interests.” Anxious retirees and others were already making contingency plans for missed checks, with the next Social Security payments due next week. Biden and Republican McCarthy have seemed to be narrowing on a two-year budget-slashing deal that would also extend the debt limit into 2025 past the next presidential election. But talks over the proposed work requirements for recipients of Medicaid, food stamps and other aid programs seemed at a standstill Friday afternoon. Biden has said the Medicaid work requirements would be a nonstarter. But he initially seemed open to possible changes on food stamps, now known as the Supplemental Nutrition Assistance Program, or SNAP. The Republican proposal would save $11 billion over 10 years by raising the maximum age for existing standards that require able-bodied adults who do not live with dependents to work or attend training programs. While current law applies those standards to recipients under the age of 50, the House bill would raise the age to include adults 55 and under. The GOP proposal would also decrease the number of exemptions that states can grant to some recipients subject to those requirements. Biden's position on the SNAP work requirements appeared to have hardened by Friday, when spokesman Bates said House Republicans are threatening to trigger an unprecedented recession “unless they can take food out of the mouths of hungry Americans.” Any deal would need to be a political compromise, with support from both Democrats and Republicans to pass the divided Congress. Failure to lift the borrowing limit, now $31 trillion, to pay the nation’s incurred bills, would send shockwaves through the U.S. and global economy. But many of the hard-right Trump-aligned Republicans in Congress have long been skeptical of Treasury’s projections, and they are pressing McCarthy to hold out. As talks pushed into another late night, one of the negotiators, Rep. Patrick McHenry, R-N.C., called Biden’s comments “a hopeful sign.” But he also cautioned that there’s still “sticky points” impeding a final agreement. While the contours of the deal have been taking shape to cut spending for 2024 and impose a 1% cap on spending growth for 2025, the two sides remain stuck on various provisions. House Republicans had pushed the issue to the brink, displaying risky political bravado in leaving town for the Memorial Day holiday. Lawmakers are tentatively not expected back at work until Tuesday, but now their return is uncertain. Weeks of negotiations between Republicans and the White House have failed to produce a deal — in part because the Biden administration resisted negotiating with McCarthy over the debt limit, arguing that the country’s full faith and credit should not be used as leverage to extract other partisan priorities. “We have to spend less than we spent last year. That is the starting point,” said McCarthy. One idea is to set the topline budget numbers but then add a “snap-back” provision to enforce cuts if Congress is unable during its annual appropriations process to meet the new goals. Lawmakers are all but certain to claw back some $30 billion in unspent COVID-19 funds now that the pandemic emergency has officially been lifted. McCarthy has promised lawmakers he will abide by the rule to post any bill for 72 hours before voting. The Democratic-held Senate has vowed to move quickly to send the package to Biden’s desk. ___ Associated Press writers Mary Clare Jalonick, Stephen Groves, Farnoush Amiri, Seung Min Kim and Kevin Freking and videojournalist Rick Gentilo contributed to this report. Read More Ukraine war’s heaviest fight rages in east - follow live Charity boss speaks out over ‘traumatic’ encounter with royal aide Lauren Boebert claims Biden plan to combat antisemitism will target ‘conservatives’ Defense secretary tells Navy graduates they are ready to serve Doctor's supporters, hospital at odds with Indiana penalty for talking about 10-year-old's abortion

Congress must address the debt ceiling by June 5 or the US Treasury will not have enough funds to pay all of the nation's obligations in full and on time, Treasury Secretary Janet Yellen said Friday.

Invoking the 14th Amendment to lift the borrowing cap on the US debt ceiling as a way to work around slow-moving negotiations is not an option, Deputy Treasury Secretary Wally Adeyemo told CNN Friday, the administration's most definitive response yet to an unlikely option demanded by some progressives.

There are signs that negotiations over raising the nation's debt limit are gaining momentum, but major differences remain and it's unclear how quickly an agreement could come together. Time is running short as the risk of a first-ever default grows.

Just six days remain before America could run out of money to pay its bills in a calamity that could trigger a recession and global economic turmoil. Deep divisions remain between the White House and House Republicans over a potential deal under which Congress would vote to raise the government's borrowing limit in exchange for capping spending.

Days from a deadline, President Joe Biden and House Speaker Kevin McCarthy are narrowing in on a two-year budget deal aiming to curb federal deficits in exchange for lifting the nation's debt ceiling and staving off an economically devastating government default. The Democratic president and Republican speaker hope to strike a budget compromise this weekend. With Republicans driving for steep cuts, the two sides have been unable to agree to spending levels for 2024 and 2025. Any deal would need to be a political compromise, with support from both Democrats and Republicans to pass the divided Congress. But the budget flow isn't the only hang-up. A person familiar with the talks said the two sides are “dug in” on whether or not to agree to Republican demands to impose stiffer work requirements on people who receive government food stamps, cash assistance and health care aid, some of the most vulnerable Americans. Yet both Biden and McCarthy expressed optimism heading into the weekend that the gulf between their positions could be bridged. A two-year deal would raise the debt limit for that time, past the 2024 presidential election. “We knew this would not be easy," McCarthy, R-Calif., said as he left the Capitol for the evening Thursday. McCarthy said, "It’s hard, but we’re working and we’re going to continue to work until we get this done.” House Republicans have pushed the issue to the brink, displaying risky political bravado in leaving town for the Memorial Day holiday. The U.S. could face an unprecedented default as soon as June 1, hurling the global economy into chaos. In remarks at the White House, Biden said, “It’s about competing versions of America.” “The only way to move forward is with a bipartisan agreement,” Biden said Thursday. “And I believe we’ll come to an agreement that allows us to move forward and protects the hardworking Americans of this country.” Lawmakers are tentatively not expected back at work until Tuesday, just two days from the early June deadline when Treasury Secretary Janet Yellen has said the U.S. could start running out of cash to pay its bills and face a federal default. Biden will also be away this weekend, departing Friday for the presidential retreat at Camp David, Maryland, and Sunday for his home in Wilmington, Delaware. The Senate is on recess and will be until after Memorial Day. Meanwhile, Fitch Ratings agency placed the United States’ AAA credit on “ratings watch negative,” warning of a possible downgrade. Weeks of negotiations between Republicans and the White House have failed to produce a deal — in part because the Biden administration resisted negotiating with McCarthy over the debt limit, arguing that the country's full faith and credit should not be used as leverage to extract other partisan priorities. The White House has offered to freeze next year's 2024 spending at current levels and restrict 2025 spending, but the Republican leader says that's not enough. “We have to spend less than we spent last year. That is the starting point,” said McCarthy. One idea is to set those topline budget numbers but then add a “snap-back” provision that enforces the cuts if Congress is unable during its annual appropriations process to meet the new goals. On work requirements for the aid recipients, the White House is particularly resisting measures that would drive Americans into poverty or take their health care, said the person familiar with the talks, who was granted anonymity to describe behind-closed-door discussions. On the Republican demand to rescind money for the Internal Revenue Service, it's still an “open issue” whether the sides will compromise by allowing the funding to be pushed back into other domestic programs, the person said. Pressure is bearing down on McCarthy from the House's right flank not to give in to any deal, even if it means blowing past the June 1 deadline. “Let’s hold the line,” said Rep. Chip Roy, R-Texas, a Freedom Caucus member. McCarthy said Donald Trump, the former president who is again running for office, told him, “Make sure you get a good agreement.” Failure to raise the nation’s debt ceiling, now at $31 trillion, to pay America's already incurred bills would risk a potentially chaotic federal default. Anxious retirees and social service groups are among those already making default contingency plans. Even if negotiators strike a deal in coming days, McCarthy has promised lawmakers he will abide by the rule to post any bill for 72 hours before voting — now likely Tuesday or even Wednesday. The Democratic-held Senate has vowed to move quickly to send the package to Biden’s desk, right before next Thursday's possible deadline. In one potential development, Republicans may be easing their demand to boost defense spending, instead offering to keep it at levels the Biden administration proposed, according to another person familiar with the talks. The teams are also eyeing a proposal to boost energy transmission line development from Sen. John Hickenlooper, D-Colo., that would facilitate the buildout of an interregional power grid, according to a person familiar with that draft. Those two people were also granted anonymity to discuss the private negotiations. The White House has continued to argue that deficits can be reduced by ending tax breaks for wealthier households and some corporations, but McCarthy said he told the president as early as their February meeting that raising revenue from tax hikes was off the table. While Biden has ruled out, for now, invoking the 14th Amendment to raise the debt limit on his own, Democrats in the House announced they have all signed on to a legislative “discharge” process that would force a debt ceiling vote. But they need five Republicans to break with their party and tip the majority to set the plan forward. They are all but certain to claw back some $30 billion in unspent COVID-19 funds now that the pandemic emergency has officially been lifted. ___ Associated Press writers Chris Megerian, Josh Boak, Zeke Miller and Mary Clare Jalonick contributed to this report. Read More Ukraine war’s heaviest fight rages in east - follow live Charity boss speaks out over ‘traumatic’ encounter with royal aide US Park Police investigate attack on Australian journalists Biden releases new strategy to tackle rise in antisemitism, says 'hate will not prevail' On 3rd anniversary of George Floyd's death, Biden stops GOP-led effort to block DC police reform law

Nearly five months before the US was projected to hit the debt ceiling, a small team inside the Treasury Department began alerting top officials to early effects already being felt in the US financial system.

"We're gonna work 24/7", says House Speaker Kevin McCarthy as time runs low to raise the debt ceiling.

A New York state judge has set a trial date for Steve Bannon's fundraising fraud case for May of next year.

House Speaker Kevin McCarthy appears set to send members home after votes on Thursday, signaling that debt negotiations with the White House will continue as the risk of a first-ever default grows.

House Republicans are pushing debt ceiling talks to the brink, displaying risky political bravado as they prepare to leave town Thursday for the holiday weekend just days before the U.S. could face an unprecedented default that could hurl the global economy into chaos. A defiant House Speaker Kevin McCarthy said the debt ceiling standoff was “not my fault” as Republican negotiators and the White House failed to finish out talks. He warned they need more time to try to reach a budget-slashing deal with President Joe Biden. But it's clear the Republican speaker — who leads a Trump-aligned party whose hard-right flank lifted him to power — is now staring down a potential crisis. Lawmakers are tentatively not expected back at work until Tuesday, just two days from June 1, when Treasury Secretary Janet Yellen has said the U.S. could start running out of cash to pay its bills and face a potentially catastrophic default. Fitch Ratings agency placed the United States’ AAA credit on “ratings watch negative,” warning of a possible downgrade because of what it called the brinkmanship and political partisanship surrounding the debate over lifting the debt ceiling. "This is a battle between extremism and common sense,” said Democratic Rep. Katherine Clark of Massachusetts, the minority whip. The Republicans, she said, "want the American people to make an impossible choice: devastating cuts or devastating debt default.” Weeks of negotiations between Republicans and the White House have failed to produce a deal — in part because the Biden administration never expected to be having to negotiate with McCarthy over the debt limit, arguing it should not be used as leverage to extract other partisan priorities. McCarthy is holding out for steep spending cuts that Republicans are demanding in exchange for their vote to raise the nation's borrowing limit. The White House has offered to freeze next year's 2024 spending at current levels, but the Republican leader says that's not enough. “We have to spend less than we spent last year. That is the starting point," said McCarthy, R-Calif. Failure to raise the nation’s debt ceiling, now at $31 trillion, would risk a potentially chaotic federal default, almost certain to inflict economic turmoil at home and abroad. Anxious retirees and social service groups are among those already making default contingency plans. Even if negotiators strike a deal in coming days, McCarthy has promised lawmakers he will abide by the rule to post any bill for 72 hours before voting — now likely Tuesday or even Wednesday. The Senate, where Democratic Majority Leader Chuck Schumer has vowed to move quickly, would also have to pass the package before it could go to Biden’s desk to be signed into law, right before next Thursday's possible deadline. The contours of a deal have been within reach for days, but Republicans are unsatisfied as they press the White House team for more. In one potential development, Republicans may be easing their demand to boost defense spending, instead offering to keep it at levels the Biden administration proposed, according to one person familiar with the talks and granted anonymity to discuss them. The Republicans may achieve their goal of of rolling back bolstered funding for the Internal Revenue Service if they agree to instead allow the White House to push that money into other domestic accounts, the person said. At the White House, press secretary Karine Jean-Pierre blamed Republicans for risking a devastating default that would hit “every single part of the country” as they demand “extreme" spending cuts that would hurt millions of Americans. She decried what the administration called a “manufactured crisis” set in motion by the GOP. The White House has continued to argue that deficits can be reduced by ending tax breaks for wealthier households and some corporations, but McCarthy said he told the president as early as their February meeting that raising revenue from tax hikes was off the table. Donald Trump, the former president who is again running for office, has encouraged Republicans to “do a default” if they don’t get the deal they want from the White House. Time is short to strike a deal. Yellen said Wednesday that “it seems almost certain” that without a deal the United States would not make it past early June without defaulting. “We are seeing some stress already in Treasury markets,” she said at a Wall Street Journal event. While Biden has ruled out, for now, invoking the 14th Amendment to raise the debt limit on his own, Democrats in the House announced they have all signed on to a legislative “discharge” process that would force a debt ceiling vote. But they need five Republicans to break with their party and tip the majority to set the plan forward. “Sign the bill!” Democrats yelled on the House floor after Republican Majority Leader Steve Scalise of Louisiana announced the holiday recess schedule. Agreement on a topline spending level is vital. It would enable McCarthy to deliver spending restraints for conservatives while not being so severe that it would chase off the Democratic votes that would be needed in the divided Congress to pass any bill. But what, if anything, Democrats would get if they agreed to deeper spending cuts than Biden's team has proposed is uncertain. McCarthy and his Republican negotiators said what the Democrats get is a debt ceiling increase — typically something both parties take responsibility for doing. “The problem is not the White House. The problem is Kevin McCarthy and the extreme Republicans,” said Rep. Pramila Jayapal, D-Wash., the chair of the progressive caucus. “They are the ones holding this economy hostage, that are putting all these cuts on the American people.” The negotiators are now also debating the duration of a 1% cap on annual spending growth going forward, with Republicans dropping their demand for a 10-year cap to six years, but the White House offering only one year, for 2025. Republicans want to beef up work requirements for government aid to recipients of food stamps, cash assistance and the Medicaid health care program that the Biden administration says would impact millions of people who depend on assistance. All sides have been eyeing the potential for the package to include a framework to ease federal regulations and speed energy project developments. They are all but certain to claw back some $30 billion in unspent COVID-19 funds now that the pandemic emergency has officially been lifted. The White House has countered by proposing to keep defense and nondefense spending flat next year, which would save $90 billion in the 2024 budget year and $1 trillion over 10 years. ___ Associated Press writers Seung Min Kim, Fatima Hussein, Kevin Freking and Darlene Superville contributed to this report. Read More Ukraine war’s heaviest fight rages in east - follow live Charity boss speaks out over ‘traumatic’ encounter with royal aide Georgia nuclear rebirth arrives 7 years late, $17B over cost Wisconsin trial over fake electors set to start just before 2024 presidential election On 1st anniversary of Uvalde, Texas, school shooting, Biden will push for more gun control