Well, I wrote that this would happen and it did. KevIn McCarthy, despite his tough talk, surrendered to Biden and Schumer and are getting close to an agreement on Biden’s insane budget and raising the debt limit. This makes Biden look strong and guarantees his reelection as President. And likely dooms Republicans in the next election to become the minority in the House again. Americans have given up on Republicans trying to protect their wallets and liberties.
(Bloomberg) Republican and White House negotiators are moving closer to an agreement to raise the debt limit and cap federal spending for two years, according to people familiar with the matter, as time grows short to avert a catastrophic US default.
The two sides have narrowed differences in talks over recent days, according to the people, though the details agreed to are tentative and a final accord is still not in hand. The two sides have yet to agree on the amount of the cap.
Under the terms of the emerging agreement, defense spending would be permitted to rise 3% next year in line with President Joe Biden’s budget request.
US Treasury yields edged lower across the curve and US equity futures pointed to gains at the open. The dollar slipped against major peers after rising to around the strongest level since March earlier in the day.
The accord would also include a measure to upgrade the nation’s electric grid to accommodate renewable energy, a key climate goal, while speeding permits for pipelines and other fossil fuel projects that the GOP favors, people familiar with the deal said.
The deal would cut $10 billion from an $80 billion budget increase for the Internal Revenue Service that Biden won as part of his Inflation Reduction Act. Republicans have warned of a wave of agents and audits while Democrats said the increase would pay for itself through less tax cheating. (Big f’ing deal! Biden still gets $70 billion for the IRS).
What is taking shape would be far more limited than the opening offer from Republicans, who called for raising the debt ceiling through next March in exchange for 10 years of spending caps. House conservatives were already balking Thursday at the notion of a small deal, with the House Freedom Caucus sending a letter to McCarthy demanding he hold firm.
An adviser to the House Democratic leadership said the White House had not shared any word about agreements on spending caps or IRS fundinh.
House Speaker Kevin McCarthy becomes the honorary Colonel Christian de Castries, the French commander at Điện Biên Phủ.