Biden, McCarthy postpone debt ceiling meeting

STORY: A planned debt limit meeting between Biden and top Congressional leaders, that was supposed to be held on Friday has been postponed.

Leaders instead agreed to meet early next week.

The White House painted the delay as a positive development. They say it means meetings are progressing.

Republican House Speaker Kevin McCarthy briefed reporters on Thursday.

“The White House didn't cancel the meeting. All of the leaders decided it was probably in the best of our interest to let the staff meet again before we get back together. I don't think there's enough progress for the leaders to get back together.”

President Joe Biden and House Speaker Kevin McCarthy have so far failed to reach an agreement on how to handle the U.S. debt ceiling.

Biden wants to unconditionally lift the government’s $31.4 trillion legal borrowing limit to avert a historic default.

McCarthy and other GOP leaders want the government to slash trillions of dollars in spending cuts before agreeing to any sort of deal.

Sources say some White House officials are acknowledging they must accept some compromise, either in the form of spending cuts or strict caps on future spending.

But at the same time they are standing firm on Biden’s signature climate legislation, which House Republicans say needs to be slimmed down, as they passed a bill in April to repeal incentives for renewable energy, EVs, and other climate-friendly tech.

Sources say the two sides are also debating how long to push out the next potential debt ceiling showdown.

Biden and Democrats hope a future confrontation happens at least two years later, pushing legislative action beyond the 2024 presidential election. But they may have to accept larger spending cuts or stricter caps to get more time.