President Joe Biden and House Speaker Kevin McCarthy have a pivotal meeting coming up on the impasse over the debt ceiling.
Biden and McCarthy spoke by phone Sunday while the president was returning home on Air Force One after. “It went well, we’ll talk tomorrow," Biden said in response to a shouted question upon his return late Sunday.
“We’ll keep working,” said Steve Ricchetti, counselor to the president, as the White House team exited talks late Sunday. Earlier, Biden used his concluding news conference in Hiroshima, Japan, to warn House Republicans that they must move off theirover raising the debt limit and that there would be no agreement to avoid a catastrophic default only on their terms.
Republicans want to roll back next year's spending to 2022 levels, but the White House has proposed keeping 2024 the same as it is now, in the 2023 budget year. Republicans initially sought to impose spending caps for 10 years, though the latest proposal narrowed that to about six. The White House wants a two-year budget deal.
The White House has countered by keeping defense and nondefense spending flat next year, which would save $90 billion in the 2024 budget year and $1 trillion over 10 years. Republicans had also rejected various White House revenue proposals, with McCarthy insisting personally in his conversations to Biden that tax hikes are off the table.
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