Biden, McCarthy strike deal to raise debt ceiling, cap spending – May 28, 2023

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WASHINGTON − President Joe Biden is ramping up his rhetoric in the debt ceiling fight, seeking to wrestle back control of negotiations that have been dominated by Republicans’ push for spending cuts.

Biden, who has gotten pushback from progressive Democrats for entertaining GOP proposals like expanded work requirements and spending caps, on Sunday demanded that Republicans move away from their “extreme positions because much of what they’ve already proposed is simply, quite frankly, unacceptable.”

It marked a shift from a more conciliatory tone as Biden goes mano a mano with House Speaker Kevin McCarthy in a one-on-one White House meeting Monday afternoon, 10 days from a June 1 deadline for default unless the debt ceiling is raised.

Inside debt ceiling negotiations

Ahead of the meeting between Biden and McCarthy, White House and Republican negotiators met at the Capitol after talks crumbled over the weekend.

• Over the monthslong impasse, talks have centered on what Republicans want: stricter work requirements for recipients of food stamps and other welfare benefits, annual caps on future discretionary spending, expedited permitting for oil and gas projects and rescinding COVID-19 funds. The White House has been open to components of each, but won’t go as far as Republicans want.
• This past weekend, Republicans proposed a new cut to the Supplemental Nutrition Assistance Program that Biden opposes, according to a White House official who discussed talks on the condition of anonymity. Republicans have also insisted on six years of annual spending caps − down from a prior demand for 10 years − while the White House will only agree to two years.
• The White House is now trying to flip the debate by pushing a key piece of the Democratic agenda: Tax increases on the wealthiest Americans and corporations by not renewing tax cuts passed under the Trump administration in 2017.
• Biden said the White House put forward a proposal that includes $1 trillion in spending cuts, but as part of the same proposal, Democrats want the tax overhaul. Republicans have balked.
• Republicans also want an increase in defense spending, which the White House said would result in further cuts to domestic programs in education and health care.

Biden’s standoff with McCarthy tests pledge to unite

Biden entered the White House more than two years ago promising to put aside differences to work with Republicans to show that Washington can govern again.

Whether he can strike a deal with McCarthy is a major test of whether Biden can unite even in the most partisan of times.

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