While the White House and Congress are continuing debt ceiling negotiations, discussions between US President Joe Biden and Republican House Speaker Kevin McCarthy appear to have made significant progress.
Reuters reported on the 25th (local time), citing sources familiar with the matter, that the gap between the federal government’s discretionary spending claimed by both sides was narrowed to $70 billion (about 93 trillion won), and that the US debt ceiling is getting closer to agreement.
The US budget bill is divided into discretionary spending and mandatory spending, and Biden’s side proposed freezing this year’s discretionary spending, while the Republicans insisted on returning to last year’s level.
Another official explained that the two sides are likely to sign a simplified agreement with only a few key points, adding that the parties to the negotiations may set a ceiling on fiscal spending and then allow Congress to coordinate details such as military spending. did.
In the meantime, Republicans have argued for a plan to cut federal government spending by more than $100 billion (about 132 trillion won) for fiscal year 2024, which begins on October 1, and limit the rate of increase in the budget over the next six years. In response, the White House responded by saying that it would freeze the budget for fiscal year 2024 instead of reducing it to the level of fiscal year 2023.
If the U.S. Congress does not agree to increase the debt ceiling of 31.4 trillion dollars (approximately 4.13 trillion won), it will be difficult for the government to fulfill all its payment obligations from the 1st of next month. Failure to increase or suspend the debt ceiling could lower the country’s credit rating.
Meanwhile, Congressman Kevin Herne (Republican, Ohio) expressed his expectation that the negotiations on raising the debt ceiling would be concluded by the afternoon of the 26th (Friday) local time.
“We are getting closer and closer to an agreement. The details that the two sides are currently discussing are details,” he said. “There is a high possibility that an agreement will be reached by tomorrow (26th) afternoon.”
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.