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Why any debt deal could be just the beginning of the treacherous road to avoiding default
Why any debt deal could be just the beginning of the treacherous road to avoiding default
Just six days remain before America could run out of money to pay its bills in a calamity that could trigger a recession and global economic turmoil. Deep divisions remain between the White House and House Republicans over a potential deal under which Congress would vote to raise the government's borrowing limit in exchange for capping spending.
1970-01-01 08:00
Deadline looming, Biden and McCarthy narrow in on budget deal to lift debt ceiling
Deadline looming, Biden and McCarthy narrow in on budget deal to lift debt ceiling
Days from a deadline, President Joe Biden and House Speaker Kevin McCarthy are narrowing in on a two-year budget deal aiming to curb federal deficits in exchange for lifting the nation's debt ceiling and staving off an economically devastating government default. The Democratic president and Republican speaker hope to strike a budget compromise this weekend. With Republicans driving for steep cuts, the two sides have been unable to agree to spending levels for 2024 and 2025. Any deal would need to be a political compromise, with support from both Democrats and Republicans to pass the divided Congress. But the budget flow isn't the only hang-up. A person familiar with the talks said the two sides are “dug in” on whether or not to agree to Republican demands to impose stiffer work requirements on people who receive government food stamps, cash assistance and health care aid, some of the most vulnerable Americans. Yet both Biden and McCarthy expressed optimism heading into the weekend that the gulf between their positions could be bridged. A two-year deal would raise the debt limit for that time, past the 2024 presidential election. “We knew this would not be easy," McCarthy, R-Calif., said as he left the Capitol for the evening Thursday. McCarthy said, "It’s hard, but we’re working and we’re going to continue to work until we get this done.” House Republicans have pushed the issue to the brink, displaying risky political bravado in leaving town for the Memorial Day holiday. The U.S. could face an unprecedented default as soon as June 1, hurling the global economy into chaos. In remarks at the White House, Biden said, “It’s about competing versions of America.” “The only way to move forward is with a bipartisan agreement,” Biden said Thursday. “And I believe we’ll come to an agreement that allows us to move forward and protects the hardworking Americans of this country.” Lawmakers are tentatively not expected back at work until Tuesday, just two days from the early June deadline when Treasury Secretary Janet Yellen has said the U.S. could start running out of cash to pay its bills and face a federal default. Biden will also be away this weekend, departing Friday for the presidential retreat at Camp David, Maryland, and Sunday for his home in Wilmington, Delaware. The Senate is on recess and will be until after Memorial Day. Meanwhile, Fitch Ratings agency placed the United States’ AAA credit on “ratings watch negative,” warning of a possible downgrade. Weeks of negotiations between Republicans and the White House have failed to produce a deal — in part because the Biden administration resisted negotiating with McCarthy over the debt limit, arguing that the country's full faith and credit should not be used as leverage to extract other partisan priorities. The White House has offered to freeze next year's 2024 spending at current levels and restrict 2025 spending, but the Republican leader says that's not enough. “We have to spend less than we spent last year. That is the starting point,” said McCarthy. One idea is to set those topline budget numbers but then add a “snap-back” provision that enforces the cuts if Congress is unable during its annual appropriations process to meet the new goals. On work requirements for the aid recipients, the White House is particularly resisting measures that would drive Americans into poverty or take their health care, said the person familiar with the talks, who was granted anonymity to describe behind-closed-door discussions. On the Republican demand to rescind money for the Internal Revenue Service, it's still an “open issue” whether the sides will compromise by allowing the funding to be pushed back into other domestic programs, the person said. Pressure is bearing down on McCarthy from the House's right flank not to give in to any deal, even if it means blowing past the June 1 deadline. “Let’s hold the line,” said Rep. Chip Roy, R-Texas, a Freedom Caucus member. McCarthy said Donald Trump, the former president who is again running for office, told him, “Make sure you get a good agreement.” Failure to raise the nation’s debt ceiling, now at $31 trillion, to pay America's already incurred bills would risk a potentially chaotic federal default. Anxious retirees and social service groups are among those already making default contingency plans. Even if negotiators strike a deal in coming days, McCarthy has promised lawmakers he will abide by the rule to post any bill for 72 hours before voting — now likely Tuesday or even Wednesday. The Democratic-held Senate has vowed to move quickly to send the package to Biden’s desk, right before next Thursday's possible deadline. In one potential development, Republicans may be easing their demand to boost defense spending, instead offering to keep it at levels the Biden administration proposed, according to another person familiar with the talks. The teams are also eyeing a proposal to boost energy transmission line development from Sen. John Hickenlooper, D-Colo., that would facilitate the buildout of an interregional power grid, according to a person familiar with that draft. Those two people were also granted anonymity to discuss the private negotiations. The White House has continued to argue that deficits can be reduced by ending tax breaks for wealthier households and some corporations, but McCarthy said he told the president as early as their February meeting that raising revenue from tax hikes was off the table. While Biden has ruled out, for now, invoking the 14th Amendment to raise the debt limit on his own, Democrats in the House announced they have all signed on to a legislative “discharge” process that would force a debt ceiling vote. But they need five Republicans to break with their party and tip the majority to set the plan forward. They are all but certain to claw back some $30 billion in unspent COVID-19 funds now that the pandemic emergency has officially been lifted. ___ Associated Press writers Chris Megerian, Josh Boak, Zeke Miller and Mary Clare Jalonick contributed to this report. Read More Ukraine war’s heaviest fight rages in east - follow live Charity boss speaks out over ‘traumatic’ encounter with royal aide US Park Police investigate attack on Australian journalists Biden releases new strategy to tackle rise in antisemitism, says 'hate will not prevail' On 3rd anniversary of George Floyd's death, Biden stops GOP-led effort to block DC police reform law
1970-01-01 08:00
Doug Mastriano says he's not running for US Senate in Pennsylvania
Doug Mastriano says he's not running for US Senate in Pennsylvania
Pennsylvania state Sen. Doug Mastriano, a fervent election denier who lost last year's gubernatorial race, said he's not running for US Senate on Thursday night, a relief for some Republicans who had feared the controversial conservative would complicate their hopes of flipping a Democratic-held seat.
1970-01-01 08:00
Democrats have warning for White House that their support for debt deal is not guaranteed
Democrats have warning for White House that their support for debt deal is not guaranteed
Rep. Susan Wild, one of the country's most politically vulnerable Democrats, made her displeasure known over the White House's handling of talks to raise the debt ceiling with House Speaker Kevin McCarthy.
1970-01-01 08:00
Anti-trans activists threaten Louisiana Republican who shot down gender-affirming care ban
Anti-trans activists threaten Louisiana Republican who shot down gender-affirming care ban
A soft-spoken Republican state lawmaker in Louisiana shot down a bill that would ban affirming healthcare for transgender youth in the state, the sole southern state that has not outlawed gender-affirming care amid a wave of restrictive measures targeting LGBT+ people across the country. State Senator Fred Mills, the chair of the Senate Health and Welfare Committee, cast the committee’s tie-breaking 5-4 vote to block the bill’s progress in the GOP-dominated state legislature on 23 May. Following the vote, Mr Mills has faced a barrage of attacks from anti-trans far-right activists on social media, his businesses have received harassing messages, and the Louisiana Republican Party is pressuring state lawmakers to sidestep the committee process and put the bill on the Senate floor for a vote. Louisiana’s House Republicans also plan to sabotage other legislation to send a message to the state Senate. Mr Mills, who is not seeking re-election and delivered congenial farewell remarks to his Senate colleagues on 25 May, appears unfazed. “Anytime you have to break a tie vote, no matter which way you vote, there’s going to be backlash, and this is a national topic,” Mr Mills told the USA Today Network. “I did like I always do. I listened to the debate and made the vote I thought was right. Why would I want to handcuff a doctor and his or her decision? I think they know more about this than politicians.” Anti-trans self-described fascist pundit Matt Walsh issued a threat to his nearly 2 million Twitter followers and claimed that Mr Mills “sided with the butchers and the groomers,” using the transphobic smear to falsely suggest that the St Martin Parish state lawmaker supports pedophilia. “He will regret it,” Walsh said. “This is the biggest mistake of his political career, and also the end of his career. He’s going to be infamous and disgraced by his own base. We’ll make sure of that.” Far-right activist Greg Price with the State Freedom Caucus Network told his followers to “let Senator Mills know how you feel about him single-handedly killing this bill to ban sex changes for kids.” Louisiana is the only state in the US South that has not banned gender-affirming care for trans youth. Nineteen states have enacted legislation to ban gender-affirming care for trans youth, and at least eight other states are considering similar legislation, against the guidance of major medical organisations, including the Americans Medical Association and the American Academy of Pediatrics, that recommend affirming treatment for trans youth experiencing gender dysphoria. House Bill 648, authored by Republican state Rep Gabe Firment, would ban health providers in the state from administering affirming care to patients younger than 18, or face the revocation of their professional licence. That care can include hormone replacement therapy and puberty blockers, which are also often prescribed for cisgender or nontransgender youth, as well as social transitioning measures, mental healthcare, and affirming surgeries, which are not recommended under major medical guidelines. A statewide report from the Louisiana Department of Health found that no affirming surgeries were performed on Medicaid-enrolled minors in the state between 2017 and 2021, and the prescription of affirming medications for trans youth within that same time period was also exceedingly rare. Mr Mills said the witness testimony and reporting from the health department persuaded him to vote against the bill. “All the testimony I heard by the proponents that children are getting mutilated, I didn’t see it in the statistics,” he told the Louisiana Illuminator. “Always in my heart of hearts have I believed that a decision should be made by a patient and a physician. I believe in the physicians in Louisiana,” he added. “I believe in the scope of practice. I believe in the standard of care.” After national backlash from far-right groups, the Louisiana Republican Party issued a statement calling for “procedural action that will result in a Senate floor vote” on House Bill 648 to give “all senators” a “chance to weigh in on this pivotal piece of legislation.” “The Republican Party of Louisiana is deeply disappointed in Senator Fred Mills’ tie-breaking vote” to kill the legislation in committee, according to a statement from the party. The bill passed through the state’s House of Representatives by a vote of 71-24. Louisina Trans Advocates said the GOP’s strategy “would be a complete disrespect of the process and would be undemocratic.” The onslaught of legislation and volatile political debate surrounding the bills have also negatively impacted the mental health of an overwhelming majority of young trans and nonbinary people, according to polling from The Trevor Project and Morning Consult. A separate survey from The Trevor Project found that 41 per cent of trans and nonbinary youth have seriously considered attempting suicide over the last year. “When you prescribe hormone therapies to these kids, they get better,” Louisiana psychologist Clifton Mixon told the state Senate health committee this week. “They want to live. They go to school. They get better grades. Their relationships improve, and they can begin to live a more normal teenage life.” Read More DeSantis wants to model America after Florida. Civil rights groups are sounding the alarm on his ‘hostile’ agenda Senator who voted for anti-trans bill that passed by one vote admits she wasn’t paying attention Trans teen misses high school graduation after judge rejects plea Trans rights groups pledge Texas lawsuit over gender-affirming care ban: ‘Anti-science, discriminatory fear-mongering’
1970-01-01 08:00
Venezuela: 'I'm paid to tweet state propaganda'
Venezuela: 'I'm paid to tweet state propaganda'
The Venezuelan government is paying people to tweet in support of it.
1970-01-01 08:00
DeSantis is going after Trump by promising Republicans he'll be a more effective wielder of executive power
DeSantis is going after Trump by promising Republicans he'll be a more effective wielder of executive power
Florida Gov. Ron DeSantis, now officially a candidate for president, is no longer tiptoeing around former President Donald Trump -- nor is he being shy about his plans to flex the powers of the presidency like never before if he wins the White House.
1970-01-01 08:00
Inside the Treasury Department team monitoring early economic warning signs as default threat looms
Inside the Treasury Department team monitoring early economic warning signs as default threat looms
Nearly five months before the US was projected to hit the debt ceiling, a small team inside the Treasury Department began alerting top officials to early effects already being felt in the US financial system.
1970-01-01 08:00
Billionaire Buys Stake in Mexico’s Mega Oil Field from Talos
Billionaire Buys Stake in Mexico’s Mega Oil Field from Talos
A unit of billionaire Carlos Slim’s Grupo Carso is purchasing a 49.9% minority stake in Talos Energy’s Mexico
1970-01-01 08:00
Twitter Will Keep Using Spaces as a Forum for Politics After DeSantis Campaign Launch
Twitter Will Keep Using Spaces as a Forum for Politics After DeSantis Campaign Launch
Twitter will “keep experimenting” with its audio platform Spaces to give political candidates a chance to connect with
1970-01-01 08:00
Washington Post: Trump employees moved boxes day before DOJ went to Mar-a-Lago
Washington Post: Trump employees moved boxes day before DOJ went to Mar-a-Lago
Two employees of Donald Trump moved boxes of papers at Mar-a-Lago a day before the Justice Department visited the former president's residence to collect classified documents , The Washington Post reported Thursday.
1970-01-01 08:00
'Peril to our democracy': Chilling lines from the judge who sentenced the Oath Keepers' leader
'Peril to our democracy': Chilling lines from the judge who sentenced the Oath Keepers' leader
Judge Amit Mehta on Thursday handed down an 18-year prison sentence for the leader of the Oath Keepers, Stewart Rhodes, for his efforts to overturn the 2020 election that ended with the violent attack on the US Capitol on January 6, 2021.
1970-01-01 08:00
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