AP source: Biden, McCarthy reach 'agreement in principle' to raise debt ceiling as default looms
WASHINGTON -- President Joe Biden and House Speaker Kevin McCarthy reached an"agreement in principle" to raise the nation's legal debt ceiling late Saturday as they raced to strike a deal to limit federal spending and resolve a looming crisis ahead of a June 5 deadline, the House speaker said.
Biden also spoke earlier in the day with Democratic leaders in Congress to discuss the status of the talks, according to three people familiar with the situation, who spoke on condition of anonymity because they were not authorized to discuss the matter publicly. Their new discussion Saturday by phone came after Treasury Secretary Janet Yellen told Congress that the United States could default on its debt obligations by June 5 -- four days later than previously estimated -- if lawmakers do not act in time to raise the federal debt ceiling. The extended"X-date" gives the two sides a bit of extra time as they scramble for a deal.
McCarthy, who dashed out before the lunch hour Saturday and arrived back at the Capitol with a big box of takeout, declined to elaborate on those discussions. One of his negotiators, Louisiana Rep. Garret Graves, said there was"not a chance" that Republicans might relent on the work requirements issue.
The president, spending part of the weekend at Camp David, continued to talk with his negotiating team multiple times a day, signing off on offers and counteroffers. Biden was upbeat as he departed the White House on Friday evening, saying:"It's very close, and I'm optimistic." Any deal would need to be a political compromise in a divided Congress. Many of the hard-right Trump-aligned Republicans in Congress have long been skeptical of the Treasury's projections, and they are pressing McCarthy to hold out.
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