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https://www.cnn.com/2023/05/19/politics/debt-limit-talks-snag/index.html
Negotiators return to debt ceiling talks after setback
Debt ceiling talks resumed Friday night on Capitol Hill, after multiple sources told CNN that earlier discussions between House Speaker Kevin McCarthy’s office and the White House had hit a snag, triggering a pause.
McCarthy told Fox Business Friday evening that they would “be back in the room tonight,” adding that he remained “very frustrated” with the White House’s position. A source familiar with the negotiations separately told CNN Friday evening that negotiators would convene shortly.
Negotiators had met briefly in the Capitol earlier Friday before breaking up, dashing hopes that there could be a deal in principle by the weekend.
GOP Rep. Dusty Johnson, an ally of McCarthy and chair of the centrist Main Street Caucus, told CNN that spending cuts were the biggest sticking point in the negotiations.
“We are too far apart on the topline number,” Johnson said earlier Friday, referring to the level of discretionary spending for fiscal year 2024. “McCarthy is holding the line. He knows where the Republican conference is. And the White House does not understand that Washington has a spending problem. “
“The gap on topline numbers is not the only problem, but it’s the biggest problem,” he added.
The South Dakota Republican said that he thought a deal was still possible by the early June deadline, but that “we’re in bad shape.” The president, he said, “needs to decide if he wants a deal or not.”
Sources familiar with the White House’s thinking acknowledged that part of the reason for the temporary breakdown in talks was that White House negotiators viewed the extent of spending cuts House Republicans were pushing for as unacceptable, though the White House has expressed a willingness to cut some spending.
McCarthy confirmed earlier Friday that talks had paused, saying there was not enough “movement” from the White House and bringing up the issue of spending cuts.
“We’ve got to get movement by the White House. And we don’t have any movement yet,” McCarthy told reporters as he headed into the Capitol.
Asked why he had such an optimistic tone one day earlier, McCarthy said, “I really felt we were at the location where I could see the path. The White House is just – we can’t be spending more money next year. We have to spend less than the year before. It’s pretty easy.”
McCarthy said he had not spoken to the president and did not answer questions about next steps.
The pause in and of itself didn’t mean the talks were falling apart. High-stakes talks on Capitol Hill over the years often feature derailments or collapses before negotiators pull things back on track. But it does underscore the challenges ahead to reaching a deal.
Time is of the essence and pressure is building to raise the borrowing limit ahead of June 1, which is the earliest date the Treasury Department says the government could be unable to pay its bills. If the US were to default, it would likely trigger a global economic catastrophe.
GOP Rep. Garret Graves, who is leading negotiations for House Republicans, left a brief meeting with negotiators in the morning saying the situation was “not productive.” At the time, he said he was not sure they will meet again this weekend.
“Until people are willing to have reasonable conversations about how you can actually can move forward and do the right thing we aren’t going to sit here and talk to ourselves. That’s what’s going on,” Graves said.
As talks stalled, a White House official acknowledged that there were “real differences” and “talks will be difficult,” but said the president’s negotiating team is working to reach a “reasonable bipartisan solution.”
This headline and story have been updated with additional developments.
CNN’s Jessica Dean, Lauren Fox, Phil Mattingly, Jeremy Diamond and Arlette Saenz contributed.
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