Both the White House negotiators and their colleagues in Congress have been exchanging views for weeks to resolve the key points of conflict.
Treasury Secretary Janet Yellen has warned Congress that the United States will run out of money before June 5 if it doesn’t raise the debt limit, the media stressed today.
“Based on the latest available data, we now believe that unless Congress raises or suspends the debt ceiling by June 5, the Treasury Department will not have sufficient resources to meet the government’s commitments,” Yellen said.
This update gives negotiators a little more leeway as the previously set deadline was June 1, notes The Hill, but the latest date seems final.
Republican Rep. Garret Graves, a key player in the talks, said proposed changes to labor requirements for certain federal assistance programs remain a “key sticking point.”
He also pointed out that more work needed to be done before both parties could reach an agreement on spending limits.
Republicans are pushing for tighter requirements for programs like Medicaid, the Supplemental Nutrition Assistance Program and Temporary Assistance for Needy Families, changes many Democrats believe are impossible.
The White House responded positively to Yellen’s comments, also emphasizing the “urgent need” for an agreement.
Both the White House negotiators and their colleagues in Congress have been exchanging views for weeks to clarify the most important points of contention.
According to The Hill, both sides had a hard time reaching an agreement on spending on defense and non-defense programs.
On Friday night, leading Democrats and Republicans sent strong signals that they are getting closer to an agreement.
While both sides said it was too early to announce a deal, they expressed confidence that they were very close to a compromise to raise the sovereign debt ceiling while taking steps to curb deficit spending.
If the debt ceiling is not raised from the current limit of 31.4 trillion (one million million), the country could suspend Social Security payments and the salaries of its federal employees, adding to the devastating impact it would cause on global economies and mortgage prices Interest rates in other countries, analysts say.
(With information from Prensa Latina)
