Debt ceiling: Two key issues in focus as McCarthy says sides 'far apart'
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Debt ceiling: Two key issues in focus as McCarthy says sides 'far apart'
for last week were postponed.
Debt-ceiling negotiators appear to be making progress on two wonky topics that could be crucial to a final deal even as the House Speaker said the two sides are still far apart.
The glimmers of possible compromise in the weeks ahead are whether the government should require more work from low-income Americans who benefit from social programs and whether to eliminate the red tape required to start new energy development projects.
A note of caution came Monday from Speaker McCarthy who told reporters at the Capitol that “I still think we are far apart” on the overall talks and the other side was "not talking anything serious."
The downbeat comments were in contrast to President Biden this weekend telling reporters “I really think there’s a desire on their part, as well as ours, to reach an agreement, and I think we'll be able to do it.”
On Monday, during a stop in Philadelphia, Biden confirmed that the leaders would be meeting Tuesday.
Stocks were mixed Monday as investors hoped for progress on a deal.
New space for a deal on work requirements
Perhaps the most significant advance over the weekend was a signal from Biden that he is open to finding space on the controversial issue of accessing social programs.
The GOP is pushing to impose new work minimums on Americans who participate in federal programs like Temporary Assistance for Needy Families (TANF), Medicaid, and SNAP (formerly known as food stamps).
The benefits would continue, according to the GOP proposal, but only if the recipients work longer hours.
Speaker McCarthy has called them common sense measures to “rebuild the workforce.” Biden, during his conversation with reporters Sunday, noted that “I voted for tougher aid programs that’s in the law now but for Medicaid it's a different story.”
White House spokesman Michael Kikukawa further explained the White House position, saying in a statement Monday that “the President has been clear that he will not accept proposals that take away peoples’ health coverage [or] policies that push Americans into poverty.”
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