On Politics

Tue May 2 2023

Hi there OnPolitics readers! The stalled debt limit negotiations seem to have hit a turning point.

House Speaker Kevin McCarthy, R-Calif., will meet with President Joe Biden next week to discuss the debt limit, ending the three-month standoff between the two leaders on the rapidly approach debt ceiling deadline, USA TODAY's Candy Woodall and Maureen Groppe report.

Why now?: Biden's invitation to McCarthy, and other top congressional leaders came about an hour after Treasury Secretary Janet Yellen warned that the government could default on its debt as early as June 1 for the first time in U.S. history.

📺 ICYMI: Biden seeks meeting with Kevin McCarthy as Treasury warns of possible June 1 default

What this means: This meeting will break the month-long impasse between McCarthy and Biden over the looming deadline as Republicans want spending cuts in exchange for raising the debt ceiling while Democrats want to increase the county's borrowing limit with no conditions.

But whether party leaders will come to an agreement is yet to be seen.

🕰️ 'The clock is ticking': House Speaker Kevin McCarthy to meet with President Joe Biden on debt limit

💰 GOP's spending cuts: White House says GOP debt ceiling plan would cause largest VA benefits cuts in US history

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