Array
House Speaker Kevin McCarthy appears set to send members home after votes on Thursday, signaling that debt negotiations with the White House will continue as the risk of a first-ever default grows.
While the speaker urged lawmakers to stay close to the nation’s capital over Memorial Day weekend, his top deputy, House Majority Leader Steve Scalise, announced that the House will recess following votes on Thursday as negotiators continue to work on a debt ceiling deal.
“Following tomorrow’s votes, if some new agreement is reached between President Biden and Speaker McCarthy, members will receive 24 hours notice in the event we need to return to Washington for any additional votes, either over the weekend or next week,” he said.
Negotiators are trying to make progress on a handful of outstanding issues – in addition to cutting federal spending, which remains a major sticking point. Two sources familiar with the matter said the White House is weighing the GOP demands in exchange for winning the lone concession offered by McCarthy: raising the debt limit.
The two sides have agreed to rescind some Covid-19 relief aid, an issue first proposed by House Republicans, according to multiple sources.
Hours of meetings on Wednesday moved negotiations in a positive direction, McCarthy told reporters, but each day that passes without a bipartisan deal to raise the debt ceiling brings the nation closer to default – which could be catastrophic for the global economy and have financial effects on countless Americans.
Warning signs are beginning to pop up: Fitch Ratings placed the top-ranked US sovereign credit rating on rating watch negative Wednesday, reflecting the uncertainty surrounding the current debt ceiling debate and the possibility of a first-ever default.
