As negotiations on the debt ceiling continue, Speaker Kevin McCarthy (R-California) and President Joe Biden met again on Monday but are still short of a deal to avoid a U.S. debt default that could come as soon as June 1st. Among items still being negotiated in this fluid process are reportedly a Republican compromise on their proposal to return to the FY2022 spending levels and then impose a 1% cap on future increases. However, there are other issues beyond spending that are subject to negotiation from the two sides, the toughest being proposed new work requirements from the GOP that would be tied to federal assistance like the Temporary Assistance for Needy Families program. Another is permitting reform to cut red tape for new energy projects. A key sticking point is also a last-minute push from the White House to close certain tax loopholes, especially in the fossil fuel and cryptocurrency sectors to raise additional revenue and Republicans have repeatedly rejected anything that could be described as a tax increase. The negotiators are also trying to find common ground on a push from the GOP to claw back COVID relief money that remains unspent. In order for text to be written and reviewed, a deal would need to come together in the next day or two in order for it to pass the House and Senate before the June 1 “X-date” when Treasury Secretary Janet Yellen said again in a letter yesterday the U.S. could default and be unable to pay all of its bills — likely upending the domestic and international markets.
While the Senate remains in recess until Tuesday, May 30th, the House is in session today and is considering , S.J. Res. 11 – Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to ‘‘Control of Air Pollution From New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards.
