LEXINGTON, Ky. (LEX 18) — A debt ceiling deal has yet to be made by Republicans and the White House. If one is not reached soon, the U.S. government could run short of cash to pay its bills as early as June 1st.
On Tuesday, House Speaker Kevin McCarthy told Republicans that they're not close on a deal at this point. But during a visit to Lexington, Senate Minority Leader Mitch McConnell indicated that he's optimistic it'll happen soon.
"I'm optimistic we'll get an outcome," said McConnell.
"I think everybody needs to relax," added McConnell. "The last ten times - the last ten times we raised the debt ceiling, there were things attached to it. This is not that unusual. It is almost entirely required when you have divided government. Regardless of what may be said about the talks on a day-to-day basis, the President and the Speaker will reach an agreement. It will ultimately be passed on a bipartisan vote in both the House and the Senate."
When asked if he's confident the country will not default on its debt, McConnell emphasized that he believes "the country will not default."
What's causing the delay in a deal? Republicans and Democrats want different things.
Republicans don't want 2024 spending to exceed 2023 levels. Democrats don't want to make additional cuts beyond a point that would keep year-to-year spending flat.
In a Monday letter to congressional leaders, Treasury Secretary Janet Yellen repeated warnings that the Treasury is facing a hard deadline.
"We estimate that it is highly likely that Treasury will no longer be able to satisfy all of the government's obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1," Yellen wrote.
