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Debt ceiling talks between White House and congressional aides are set to intensify as negotiators seek a framework agreement for President Joe Biden and Speaker Kevin McCarthy (R-Calif.) to review upon the president’s return from a truncated trip to Asia.
The latest round of talks — launched before Biden’s departure today for a G-7 meeting in Hiroshima, Japan — will feature a narrower group of negotiators in hopes of yielding a deal to avert an unprecedented US default.
Biden said he would call lawmakers and staff to remain apprised of the negotiations during his time abroad, and hopes to gather with congressional leaders once he is back in the country next week.
The president intended to visit Australia and Papua New Guinea, but scrapped those stops in hopes of brokering an agreement.
Australian Prime Minister Anthony Albanese, who Biden called Tuesday to cancel his visit, said the American president expressed frustration with Republican lawmakers.
“He’s very disappointed at some of the actions” of lawmakers in the US House and Senate, ” Albanese told an Australian radio station.
Biden and lawmakers struck a cautiously optimistic tone following a meeting Tuesday, saying that while the two sides remained far apart, they were hopeful the new negotiating teams could find bipartisan middle ground.
The hope on competing ends of Pennsylvania Avenue is that the two sides can avoid calamity by delegating responsibility to a smaller group — many of whom are known as negotiators able to strike deals. Senior White House adviser Steve Ricchetti, legislative affairs director Louisa Terrell and budget director Shalanda Young will represent Democrats in staff-level negotiations, while Representative Garret Graves of Louisiana as well as aides to the speaker will join from the Republican side.
“There was an overwhelming consensus, I think, among the congressional leaders that defaulting on the debt is simply not an option,” Biden said in remarks following the meeting. But the president cautioned, “there’s still work to do.”
McCarthy has agitated for narrower talks in recent days, and said Tuesday a deal could come together quickly.
“We’ve got a lot of work to do,” McCarthy told reporters. “It is possible to get a deal by the end of the week. It’s not that difficult to get to an agreement.” Josh Wingrove and Jennifer Jacobs have more on what’s to come.
- House votes by 5 p.m. on bills to deport immigrants for police assault and resell retired federal handguns.
- Senators meet at 10 a.m. to consider judicial nominations and a resolution to block a Biden administration measure redefining “public charge” policy for immigrants.
- At 9:30 a.m., Biden honors 2021-2022 Medal of Valor recipients at the White House.
- The president departs the White House at 11:25 a.m. en route to Hiroshima, Japan by way of Joint Base Andrews and Anchorage, Alaska.
Congress Eyes Banks, Markets
New lawmakers landing seats on congressional committees overseeing the banking industry are finding a ready source of campaign dollars.
Former First Republic Bank CEO Michael Roffler said his bank’s collapse was due to the contagion from other regional bank failures that triggered deposit outflows.
The former Silicon Valley Bank executive who’s taken the brunt of criticism for the lender’s collapse is refusing to commit to giving up any of the $10 million he received annually from the failed lender.
A group of Democratic senators is urging the SEC to finalize new rules designed to increase transparency for private investment firms following recent bouts of market volatility.
Politics & Probes
McCarthy said he wants the Ethics Committee to launch an expedited review of scandal-plagued Rep. George Santos (R-N.Y.) as Democrats seek to expel him from Congress.
Former Vice President Mike Pence is calling for an end to the Federal Reserve’s dual mandate, saying the central bank should focus solely on fighting inflation and leave creating jobs to Congress and the president.
Kentucky is about to test whether a familiar name and personal popularity can help a red-state Democrat fend off a challenge from a Republican backed by Donald Trump and home-state Sen. Mitch McConnell (R).
Pennsylvania’s election for a new state Supreme Court justice will start out drama-free after the major political parties got the nominees they wanted.
The NRA’s lobbying arm sued to block Maryland from enforcing new gun-control measures that enhance requirements for obtaining concealed-carry permits and restrict firearms in sensitive areas including school grounds and hospitals.
Rachael Rollins, the first Black woman US Attorney for Massachusetts, is resigning a day before the DOJ’s internal watchdog will unveil investigative findings about her term in office, according to two sources familiar with the situation.
What Else We’re Reading
On Tuesday, OpenAI CEO Sam Altman told senators about a variety of areas where he’d support regulation, including preventing election misinformation, making A.I.-generated content clear to users — oh, and stopping people from using the emerging technology to kill us all.
The Senate voted Tuesday to block Washington, D.C. from enacting changes to the capital city’s police practices, the latest effort by Republicans to use the Democratic-controlled city to amplify their anti-crime message.
Protecting flight crews from violent passengers, preventing train derailments and fending off transit cuts are among major transportation unions’ priorities in coming months.
The ratcheting up of pressure follows a Bloomberg Law report that the Navy hadn’t resolved any of about 45,000 claims by the end of April and that an online portal to process them won’t be ready before the summer.
The IRS will test a free agency-run online tax-filing tool, following a highly-anticipated report on the feasibility of such a system, IRS and Treasury Department officials said Tuesday.
The White House is not currently planning to ask Congress for additional Ukraine funding before the end of the fiscal year, CNN reports.
China, Russia, the US, and its allies are stepping up efforts to win over governments in a deepening competition for hearts and minds in strategic third countries.
To contact the editor responsible for this story: Kayla Sharpe at email@example.com