McCarthy hints at debt ceiling deal tonight or tomorrow

On Monday, US House Speaker Kevin McCarthy expressed optimism about reaching a deal on the debt-limit with White House negotiators, stating that discussions had been productive leading up to a meeting with President Joe Biden later in the day.

McCarthy said he’s insisting on an agreement to “spend less” than current levels in a deal, although he gave no remarks when asked if the total amount would be somewhere in between this year and fiscal 2022 levels. He drew a line against cuts to military spending, saying “I don’t think you should put America in jeopardy.”

On Biden’s way back Sunday from the G-7 summit in Japan, he had a phone call with McCarthy that the speaker described as “productive” and included a request from the president to meet. The meeting, which is scheduled for 5:30 p.m.

The White House and Republican leaders are in a high-stakes meeting to reach a deal on spending, just 10 days before the Treasury Department’s June 1 deadline. Negotiators will return from a day of talks on Capitol Hill to brief Biden in person before the two leaders sit down. One of the biggest questions surrounding the meeting is whether Biden and McCarthy can reach a deal that has the votes to pass the Republican-led House and Democratic-controlled Senate in a short period of time.

A White House official said a “reasonable compromise” was still attainable, despite the obstacles in reaching a deal both sides can agree to. Biden addressed the state of the negotiations in Hiroshima, Japan, arguing that Republicans’ “extreme positions” were holding up progress.

McCarthy reiterated he will abide by the 72-hour rule before a new bill gets a House vote. Senate Majority Leader Chuck Schumer, D-N.Y., adjourned the chamber last week for a pre-scheduled recess but told senators to be ready to return within 24-hour notice.