Debt Ceiling Compromise Close But Not Final As Default Looms

Negotiators for the White House and Speaker's Office are reportedly getting closer to reaching a compromise on legislation to lift the debt ceiling while cutting spending, but they’re not there yet.

While most members of Congress are now home in their districts for the long Memorial Day weekend, a core group remained entrenched at the Capitol Friday, determined to reach what, so far, has proved an elusive compromise before the U.S. Treasury has bills come due that can't be paid.

Speaker McCarthy arrived at the Capitol this morning ready to resume the talks.

"Look, I'm going to work as hard as we can to get a deal," said Speaker Kevin McCarthy (R-CA) Friday morning upon arriving at the Capitol. "We'll get a deal, but it has to be worthy of the American people and the sacrifices they've made."

Multiple reports suggest there's now general agreement between the two sides to raise debt ceiling for two years, not one as the GOP's Limit, Save, Grow Act called for, while overall federal spending would be capped for two years, instead of the next ten.

Over those two years, funding for the military and for veterans would increase slightly, while funding for other domestic programs would either be held flat or be slightly reduced.

Where the two sides seem to be stuck is on adding working requirements for certain government benefit programs. Democrats have been adamant in opposing the proposal while Republican negotiators today said that was a must-have and they would not budge on that issue.

Still, there are indications that members of the far-right Freedom Caucus may be unhappy with the deal that's emerging, believing the Speaker may be giving up too much.

Oklahoma's Josh Brecheen, a member of the Freedom Caucus, criticized President Biden for not agreeing to negotiate sooner and said what's contained in the Limit, Save, Grow Act should be the minimum of what's included in the debt ceiling deal.

"What many of us are saying is, we gave you something that was reasonable two weeks ago," Rep. Brecheen (R-OK2) said in an interview this week, "and now what we're saying is, because of your continued actions on the border and lifting Title 42, we think that (border security) needs to be added into the mix."

Word came late Friday afternoon that Congress may have some additional time to find a package that can get enough Republican and Democratic votes to pass -- Treasury Secretary Yellen amended the likely "X" date from June 1 to June 5.

Still, House rules require members have 72 hours to review legislation before voting. It will then have to move through the Senate and to the President.

Time is in short supply.