Webdesk: With key differences unresolved, US Democratic and Republican negotiators are struggling to raise the debt ceiling.
Democratic President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy must negotiate a compromise before the federal government’s self-imposed borrowing ceiling reached, risking a catastrophic default.
Negotiators reached a deal on military and IRS financing and proposed a two-year debt ceiling extension. They cannot agree on employment requirements for certain anti-poverty programmes, which has become a serious issue.
Garret Graves, lead Republican negotiator, said “major issues” remain, including employment requirements. The Republican proposal requires childless persons under 56 to work or seek work to qualify for Medicaid and SNAP.
Democrats oppose these work restrictions, stating that they will impose additional bureaucratic burdens and reject eligible persons.
If the debt ceiling not raised this week, a default may devastate financial markets and cause a recession. Wall Street’s main indexes rose on Friday in hopes of negotiations progressing.
A two-year debt limit extension would give Congress more time to address the issue and delay additional discussions until after the 2024 presidential election.
In addition to the arguments, leaders from both parties must win congressional backing for the accord. Right-wing Republicans want major spending cutbacks, while Democrats oppose work requirements.
After a compromise is reached, lawmakers will return to Washington for vote. House leaders have given legislators three days to evaluate the plan before voting, but any senator can postpone proceedings.
