Biden, McCarthy appear to be close to a 2-year US debt ceiling deal

WASHINGTON, May 26 (Reuters) – U.S. President Joe Biden and Republican House Speaker Kevin McCarthy are getting closer to reaching a two-year deal to raise the current $31.4 trillion national debt ceiling while cutting spending in most areas, he said Reuters representative familiar with the negotiations.

The deal, which is not final, will increase discretionary spending funding for military spending and veteran assistance, while non-defense discretionary spending will remain at current year levels, said the official, who spoke on condition of anonymity because he was not authorized to speak to the media. about internal discussions.

The White House is considering curbing a plan to increase IRS funding to hire more auditors and target wealthy Americans, an official said.

The final deal will set out the total amount the government can spend on discretionary programs such as housing and education, but no categorization, according to a source familiar with the talks. According to another source, the two sides differ by only $70 billion, and the total amount will exceed $1 trillion.

The White House said Thursday’s meeting was held online.

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(Nandita Bowes, Jarrett Renshaw, David Morgan, Richard Cowan, Moira Warburton, Trevor Hunnicutt, Douglas Gillison, Graham Slattery, Dan Burns and Karen Brettell)