Republicans hit 'pause' as default looms: What you missed this week in debt ceiling talks

The clock is ticking for Congress to raise the debt ceiling. The country is less than two weeks out from the Treasury Department’s earliest projected "X-Date," the day the United States could run out of cash to fully pay all of its obligations.

Negotiations between the Republican-controlled House and the White House hit a snag Friday as Republican negotiators walked out of a closed-door meeting with White House officials.

House GOP lawmakers have pressed for slashes to the federal budget in exchange for raising the debt ceiling, but President Joe Biden and congressional Democrats have opposed to demands such as expanded requirements for recipients of welfare programs.

The White House has maintained the ongoing budget talks are completely isolated from raising the debt ceiling, but House Speaker Kevin McCarthy and his fellow Republicans think otherwise, saying their pressure on the debt limit has brought Biden to the negotiating table.

“I’m confident that we’ll get the agreement on the budget, and America will not default,” Biden said before departing for an overseas trip cut short due to the debt ceiling talks.

Here's what you need to know about the debt ceiling negotiations this week.

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Negotiations come to abrupt halt before critical weekend

Negotiations on raising the debt ceiling came to an abrupt halt Friday as Republican negotiators walked out of a closed-door meeting with White House officials, leaving the two sides at a stalemate heading into a critical weekend.

Rep. Garret Graves, R-La., who is leading negotiations for House Speaker Kevin McCarthy, told reporters it's time to "press pause" on negotiations "because it's just not productive." He said negotiations became “just unreasonable” and that it was unclear when talks would resume.

Rep. Patrick McHenry, R-N.C., another Republican negotiator said, “There is a “serious gap” between the sides. "We're in a tough spot."

A White House official, who spoke on the condition of anonymity, said, "There are real differences between the parties on budget issues and talks will be difficult. The president’s team is working hard towards a reasonable bipartisan solution that can pass the House and the Senate.”

The White House believes several of the top demands of Republicans would not get the support needed from Democrats in Congress for passage, according to a source familiar with negotiations.

One major sticking point, according to the source, remains expanded work requirements for federal benefits such as food stamps that Republicans covet but President Joe Biden and Democrats oppose. Several Democratic lawmakers have characterized stricter work requirements for welfare as a nonstarter.

Yellen's default warning: 'Severe hardship to American families'

Treasury Secretary Janet Yellen reaffirmed her department's previous projection the U.S. could default on its debts as early as June 1 in a stark warning to Congress.

“We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers and negatively impact the credit rating of the United States,” Yellen wrote in a letter to congressional leaders.

“If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests,” Yellen warned.

Yellen issued a similar warning on May 1, which prompted Biden to schedule a meeting with the top four party leaders in Congress to discuss the debt ceiling after talks stalled.

Biden cancels parts of overseas trip for debt ceiling negotiations

Biden was originally scheduled to visit Australia and Papua New Guinea after meeting with other world leaders at the Group of Seven Summit in Hiroshima, Japan, but those extra stops were canceled for him to return to debt ceiling negotiations.

“I'm cutting my trip short. I'm postponing the Australia portion of [the] trip and my stop in Papua New Guinea in order to be back for the final negotiations with congressional leaders,” Biden said Tuesday at an event celebrating Jewish American Heritage Month.

He is scheduled to hold a press conference Sunday on the debt limit before heading back to the U.S. for negotiations.

Biden leaves door open for tougher work requirements in debt limit deal, drawing concern from progressives

Biden has left the door open for stricter work requirements for federal aid programs such as food stamps, an issue that has proven to be a top sticking point in negotiations. It is unclear what those changes could entail, as Biden pushed back on work requirements that would “go much beyond” rules he previously supported as a senator in the 1990s.

The White House’s refusal to completely take work requirements off the table has drawn concern from progressives and top Democrats on what Biden is willing to give up for a debt ceiling agreement.

“We have to be very clear that this kind of hostage-taking cannot be rewarded,” Rep. Pramila Jayapal, D-Wash., chairwoman of the Congressional Progressive Caucus, said in an interview with USA TODAY.

House Minority Leader, Hakeem Jeffries, D-N.Y., told CNBC that tougher work requirements are a “nonstarter” in any budget proposal.

'Hostage-taking cannot be rewarded': Liberals worry Biden is caving in debt-ceiling talks

Circle of negotiators on debt limit gets smaller

It's unclear where progress on negotiations stand. McCarthy told reporters Thursday morning he can “see the path that we can come to an agreement,” but they “haven’t agreed to anything yet.”

But the circle of key negotiators has grown smaller and more focused, which could indicate a deal could come soon. For House Republicans, McCarthy has tapped ally Rep. Garret Graves R-La., to lead negotiations alongside McCarthy’s own aides.

The White House has chosen Steve Ricchetti, counselor to the president, and Shalanda Young, director of the Office of Management and Budget, to work with Louisa Terrell, director of the White House Office of Legislative Affairs, to negotiate on behalf of the Biden administration.

'I'm much more scared now': Veterans of 2011 debt ceiling crisis say this year's fight is different

McCarthy risks backlash from right flank in debt limit deal

McCarthy could face backlash from hardline conservatives in his own conference if a debt ceiling proposal is brought to the House floor.

House Republicans are working with a slim majority and any debt-ceiling agreement struck between McCarthy and Biden could draw the ire of the chamber’s most conservative lawmakers.

One of the key concessions McCarthy made to his far-right flank to become speaker was restoring the motion to vacate and allowing one single member of the House to initiate a vote to oust the speaker. That concession could come back to haunt him, depending on lawmakers' reaction to a deal blessed by Biden and McCarthy.

For now, one lawmaker who held up McCarthy's speaker vote said a motion to vacate is not on the table, even if hardline conservatives come out to be against an agreement.

“Nobody’s talking about that. We support our speaker. We want him to be successful because the country needs for him to be successful,” Rep. Bob Good, R-Va., said on MSNBC Wednesday.

Related: Last-minute deal on debt ceiling could still spark recession even if US avoids default

Contributing: Joey Garrison, USA TODAY

This article originally appeared on USA TODAY: Biden, McCarthy deal: What to know about 2023 debt ceiling talks