The new “X date” offered Congress and the White House a few more days than previously anticipated to cobble together an agreement that can raise the debt ceiling and satisfy Republicans’ demands for new spending cuts. But time remains short to finalize and advance any such legislation through the narrowly divided House and Senate, where Democrats and Republicans alike have grown apprehensive and critical about their leaders’ behind-the-scenes efforts to craft a deal.
“We’re within the window of being able to perform this, and we have to come to some really tough terms in these closing hours,” said Rep. Patrick T. McHenry (R-N.C.), one of McCarthy’s chief emissaries, who said late Friday that Yellen’s new update underscores “the urgency” of their labor.
A day later, McCarthy reiterated to reporters that he is optimistic, noting he had already been in contact with the White House.
Privately, the two sides have discussed a deal that could extend the debt ceiling into 2025, along with a freeze on much domestic spending and an increase in defense and veterans funding. Negotiators have eyed delivering on a key GOP priority by clawing back money from the IRS, which had received a budget boost to pursue unpaid federal taxes.
Representatives for Biden and McCarthy still have not resolved a wide array of other Republican demands, including new work requirements targeting the recipients of nutrition assistance and other federal aid programs. But the nature of their talks — and the early contours of their potential deal — increasingly have left conservatives frustrated that they lost more than they gained.
The powerful, ultraright House Freedom Caucus has pressed McCarthy in recent days to hold firm to the bill the chamber passed last month, which would couple a short-term increase in the debt ceiling with steep spending cuts and a rollback of Biden’s key policies, including his efforts to cancel college students’ debts and combat climate change.
“Anything that strays too far from the House-passed bill is going to concern conservatives,” said Rep. Ben Cline (R-Va.), a member of the caucus. He added that any increase in the debt ceiling into 2025 — beyond what the party previously proposed — would require McCarthy to “add items” to the talks.
Democrats, meanwhile, have sounded their own fears about the compromises Biden might make during his haggling with Republicans, raising worries that any deal with McCarthy might harm American families’ finances. They have taken special exception to the continued GOP push to tie the debt ceiling to new work requirements, which many liberals overwhelmingly oppose.
“The devil’s always in the details,” said Rep. Pramila Jayapal (D-Wash.), the leader of the liberal-leaning Congressional Progressive Caucus, noting that the block has been adamant in its belief that a deal cannot include big cuts that disadvantage working people.
The tensions nonetheless underscore the complicated math facing both Biden and McCarthy, who have acknowledged that any resolution of the debt ceiling standoff is going to require votes from both parties.
Biden late Friday expressed a measure of optimism, telling reporters before he headed to Camp David that a deal is “very close.”
Paul Kane contributed to this report.
