Key takeaways:
- The House of Representatives passed a bill on the debt limit and spending cuts on Wednesday, with only Republican votes.
- The Biden administration has proposed a plan to raise the debt limit and suspend it until the end of July, but Republicans have rejected the proposal.
- The deadline for raising the debt limit is August 2nd, and if no agreement is reached, the US could default on its debt for the first time in history.
The House of Representatives passed a bill on the debt limit and spending cuts on Wednesday, with only Republican votes. House Speaker Kevin McCarthy said that the GOP negotiators, Reps. Patrick McHenry and Garret Graves, are resuming talks with Biden administration officials in hopes of brokering a deal to avert a default on the country’s $31.4 trillion debt. However, McCarthy warned that there are still “a number of places that we are still far apart” and said “it didn’t seem like it’d be this hard” to reach an agreement.
Rep. Matt Gaetz (R-Fla.) commented on the stalled-but-continuing federal debt limit talks, saying that his conservative colleagues for the most part support Limit, Save, Grow and they don’t feel like they should negotiate with their “hostage”. McCarthy reiterated the GOP’s demands to slash federal spending rather than freeze it at current levels, and again vowed not to bring a bill to the floor that does not have the support of the majority of the Republican conference.
The Biden administration has proposed a plan to raise the debt limit and suspend it until the end of July, but Republicans have rejected the proposal. The White House has also proposed a $1.7 trillion infrastructure package, which Republicans have also rejected.
The deadline for raising the debt limit is August 2nd, and if no agreement is reached, the US could default on its debt for the first time in history. Talks between the White House and House Republicans are ongoing, but it remains to be seen if a deal can be reached before the deadline.
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