Will the president concede?

President Joe Biden and House Speaker Kevin McCarthy have agreed that any budget deal would need to be agreed upon by both Republicans and Democrats, according to White House press secretary Karine Jean-Pierre.

However, after negotiators ended their meeting on May 19, no agreement was reached. Negotiators from each side said the other side's proposals were too extreme, and it was uncertain when they would meet again.

Congress is divided

House Speaker McCarthy had hoped on May 19 to reach at least an agreement in principle by the end of the week and prepare for a House vote next week. But late on May 20, he said the talks were unlikely to make any progress until Biden returned to Washington from the G7 summit in Japan.

Asked why he had struck such an upbeat tone a day earlier, McCarthy said: “I really feel like we’re in a position where we can see the path. We can’t spend more money next year, we have to spend less than we did last year. That’s pretty easy.”

"I don't think we're going to be able to move forward until the president gets home," Kevin McCarthy told reporters at the US Capitol in Washington, DC on May 20. Photo: Bloomberg

Republicans hold a majority in the House of Representatives and Mr Biden's Democrats have narrow control of the Senate, so no deal can pass without bipartisan support.

The House of Representatives, led by Mr McCarthy, has passed a bill that would require the government to cut spending by 8% next year. Democrats say that would force programs likeeducation and law enforcement to cut an average of at least 22%.

Republicans also proposed increasing defense spending, increasing the Pentagon budget, and cutting overall spending. Their demands have been met with resistance from the White House because they would mean further cuts to domestic priorities such as education and health care programs.

Meanwhile, the White House proposed keeping defense and non-defense spending unchanged in fiscal year 2023, but was rejected by Republicans.

According to Ms. Jean-Pierre, the Republican proposal is a huge step backward and contains a series of extreme partisan demands that could never pass in both parties of Congress.

Temporary interruption?

President Biden is in Japan but is being kept updated on ongoing negotiations in Washington.

Part of the reason the talks broke down was because White House negotiators considered the level of spending cuts proposed by Republicans unacceptable, even though the White House had expressed a willingness to cut some spending, CNN reported.

On May 19, Mr McCarthy confirmed that the talks had been paused, saying there had been insufficient “movement” from the White House.

President Joe Biden will meet with Ukrainian President Volodymyr Zelensky at the G7 summit on May 21 and return to the United States later in the day, according to a White House statement. Photo: Times of Israel

Asked why he had struck such an upbeat tone a day earlier, McCarthy said: “I really feel like we’re in a position where I can see the path. The White House is just — we can’t spend more money next year. We have to spend less than we did last year. It’s pretty easy.”

Republicans believe the president will eventually decide to sacrifice priorities to ease the biggest threat to the economy ahead of his re-election campaign. The president had insisted on not negotiating a debt ceiling increase, but has since changed his mind.

The pause does not necessarily mean that the talks have failed, as major negotiations on Capitol Hill over the years have often veered off course or collapsed before getting back on track. But the disruption suggests that both parties will have to overcome a number of challenges before reaching a deal.

Time is of the essence, and pressure is mounting to raise the debt ceiling before the day the US Treasury warns the federal government risks defaulting on its bills. If the US defaults, it could trigger a global economic disaster .

Nguyen Tuyet (According to CNN, Reuters, Bloomberg)

Source: https://www.nguoiduatin.vn/dam-phan-no-cong-my-tong-thong-se-nhuong-bo-a608827.html