Biden to meet with congressional leaders early next week on debt

(Adds Karine Jean-Pierre quote in paragraph 4, additional details)

Jeff Mason

WASHINGTON 12 MAY (Reuters) – White House spokesperson Karine Jean-Pierre stated on Friday that Joe Biden and Republican House Speaker Kevin McCarthy will be meeting early next year to resume negotiations on a budget and to resolve a looming national debt default.

Leaders had cancelled a meeting planned for Friday so that staff could continue discussing.

Pierre said to reporters that staff-level discussions, which began on Tuesday, had been “productive,” but declined to give details.

“It has been productive.” She said, “It has been ongoing.” They’re meeting today and they’re meeting over the weekend. This should tell you that things are moving in the right directions.

Aides to Biden and McCarthy are now discussing ways to limit federal expenditures, as discussions on raising the government’s $31.4 trillion in debt ceiling to prevent a catastrophic default progress.

reported.

Biden, who is scheduled to depart next week for G7 summit, has said that the Treasury Department could run out money on June 1 without lawmakers lifting the nation’s national debt ceiling. Biden said initially that he would cancel the trip, but Jean Pierre said Friday he will be going.

Biden’s fiscal

2024 budget

Request relies on increased taxes to reduce deficits, while proposing an increase in discretionary spending of 5 percent next. It is more than 200 billion dollars.

House Republicans

, however, who want to cut agency budgets on average by 8 percent while increasing defense and veterans spending — meaning other programs would face steeper cuts. (Reporting and editing by Jonathan Oatis, Doina chiacu and Jeff Mason)