Biden, McCarthy have 'productive' debt ceiling meeting, but still lack deal as default looms

Biden, McCarthy have 'productive' debt ceiling meeting, but still lack deal as default looms,

WASHINGTON - President Joe Biden and House Speaker Kevin McCarthy appeared to make progress but did not reach an agreement during a pivotal White House meeting Monday evening on raising the debt ceiling 10 days before a potential default.

“I felt we had a productive discussion," McCarthy told reporters following the roughly one-hour meeting. "We don’t have an agreement yet.”

The high-stakes Oval Office meeting, which lasted about an hour, came after negotiations took a step backwards over the weekend amid long-standing disagreements on spending cuts sought by Republicans.

McCarthy commended the "professionalism" and "honesty" in the meeting but it wasn't immediately clear which areas produced headway. McCarthy said he's unwilling to consider tax increases on the wealthy, which Biden supports, or defense cuts pushed by some liberal Democrats.

The problem is not revenue. The problem is spending," McCarthy said.

Biden 'optimistic' as McCarthy applauds 'better' tone
Biden is racing to reach a budget deal with House Republicans so they will take action to raise the debt ceiling before June 1, when the Treasury projects the U.S. could run out of money and default. But Republicans want spending cuts that Biden slammed Sunday as "unacceptable" for a deal.
Biden, in a statement after the meeting, also described a "productive" discussion. "We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement," he said.

Kicking off the meeting, Biden told reporters he was "optimistic" about making progress. "We still have some disagreements but I think we may be able to get where we have to go," he said. "We both know we have a significant responsibility."

It was the third time Biden and McCarthy have met in less two weeks but their first one-on-one gathering in more than 100 days when they kicked off debt ceiling talks in February. Other recent meetings included other congressional leaders from both parties.

"I think the tone tonight was better than any other time we've had discussions," McCarthy said. "I believe we can get it done."