Factbox-Biden, McCarthy debt ceiling deal – what’s in, what’s out – Stock market news
WASHINGTON (Reuters) – US President Joe Biden and House Speaker Kevin McCarthy, the top Republican in Washington, hope to finalize a deal on the debt ceiling after Biden returns from the meeting of the Group of Seven in Japan on Sunday.
The debt ceiling bill that Republicans passed in the House and Democrat Biden’s 2024 budget are far apart in terms of spending, taxes and other measures. But a vague outline of what might be in a deal, and what wouldn’t, slowly began to take shape.
Republicans are calling for tougher work requirements for some federal aid programs, such as SNAP food assistance. This has raised concerns among Democrats that low-income Americans will suffer. Biden on Wednesday said he is open to some additional work requirements in limited cases “but nothing of consequence.” He ruled out changes in particular to the Medicaid and TANF (Temporary Assistance for Needy Families) programs.
A compromise on reforming the energy permitting process is possible and White House officials say it is being actively discussed. The White House has asked Congress to pass permitting legislation that would help accelerate clean energy and fossil fuel projects. Republicans have made allowing the reform a priority.
NO NEW TAXES?
Biden told reporters on Tuesday, after meeting with McCarthy in the Oval Office, that Republicans are opposed to raising more tax revenue as a way to pay for government programs. White House officials said they floated proposals such as raising taxes on the wealthy and closing tax loopholes for the oil and pharmaceutical industries, but Republicans rejected the ideas.
The two sides remain at odds over where to cut spending in the federal budget. A House Republican bill would reduce 2024 US discretionary spending to the 2022 level of $1.664 trillion and limit subsequent annual increases to 1% for ten years. The White House’s 2024 budget request proposes $1.9 trillion in discretionary spending – a 9.4% increase followed by annual increases averaging 1% over ten years. The discretionary spending proposals would add $2.23 trillion to deficits over 10 years, offset by tax increases.
The White House has largely ruled out Republican spending cuts. But Republicans are insistent that any deal on the debt ceiling must include spending cuts, and negotiations continue on this front.
Republicans would like to cap federal spending for 10 years. The White House countered with a proposal to limit spending for two years.
(Reporting by Heather Timmons and Steve Holland; editing by Grant McCool)