CNN
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Debt ceiling talks resumed Friday night on Capitol Hill, after multiple sources told CNN that earlier discussions between House Speaker Kevin McCarthy’s office and the White House had hit a snag , causing a pause.
McCarthy told Fox Business on Friday evening that they would be “back in the room tonight,” adding that he remained “very frustrated” with the White House’s position. A source familiar with the negotiations told CNN separately Friday evening that negotiators would meet shortly.
Negotiators had met briefly at the Capitol on Friday before breaking off, hoping there could be a deal in principle by the weekend.
Republican Rep. Dusty Johnson, a McCarthy ally and chairman of the centrist Main Street Caucus, told CNN that the spending cuts were the biggest sticking point in the negotiations.
“We’re too far apart on the top line number,” Johnson said earlier Friday, referring to the level of discretionary spending for fiscal year 2024. “McCarthy is holding the line. He knows where the GOP is at . And the White House doesn’t understand that Washington has a spending problem.”
“The gap in the top line numbers is not the only problem, but it is the biggest problem,” he added.
The South Dakota Republican said he thought a deal was still possible in early June, but that “we’re in bad shape.” The president, he said, “has to decide whether he wants a deal or not.”
Sources familiar with White House thinking acknowledged that part of the reason for the temporary hiatus in the talks was that White House negotiators found the scope of the spending cuts that White House Republicans wanted unacceptable intended, although the White House has expressed the will to reduce some expenses. .
McCarthy confirmed earlier Friday that the talks had stalled, saying there was not enough “movement” from the White House and raised the issue of spending cuts.
“We have to get movement from the White House. And we don’t have movement yet,” McCarthy told reporters as he headed to the Capitol.
Asked why he had such an upbeat tone a day earlier, McCarthy said: “I really felt like we were in a place where I could see the way forward. The White House is just that we can’t spend more money next year. We have to spend less than the year before. It’s pretty easy.”
McCarthy said he had not spoken to the president and did not answer questions about next steps.
The pause in itself did not mean that the talks were collapsing. High-stakes talks on Capitol Hill over the years often feature derailments or collapses before negotiators pick things back up. But it underscores the challenges of reaching an agreement.
Time is of the essence and there is a push to raise the debt limit before June 1, which is the earliest the Treasury Department says the government could be unable to pay its bills. If the United States prevailed, it would likely trigger a global economic catastrophe.
Republican Rep. Garret Graves, who is leading negotiations for House Republicans, left a brief meeting with negotiators in the morning saying the situation was “not productive.” Then he said he wasn’t sure they would meet again this weekend.
“Until people are willing to have reasonable conversations about how to move forward and do the right thing, we’re not going to sit here and talk to ourselves. That’s what’s happening,” Graves said.
As the talks got under way, a White House official acknowledged there were “real differences” and that “talks will be difficult,” but said the president’s negotiating team is working to reach a “bipartisan solution reasonable”.
This headline and story have been updated with additional news.
