The clock is ticking for President Joe Biden and House Speaker Kevin McCarthy to come to agreement to avoid a first-ever default on the nation's debt. And although there are some positive signs suggesting they're closer to a consensus, there is still no deal.
They face a looming deadline, with Treasury Secretary Janet Yellen reaffirming in a letter to McCarthy on Monday that it is "highly likely" that the US Treasury will not be able to pay all of its bills in full and on time as soon as June 1.
While McCarthy emerged from a meeting at the White House with Biden on Monday evening without a deal, he underscored that both parties are united in their goal of reaching an agreement to raise the nation's debt limit before the country defaults.
"I felt we had a productive discussion. We don't have an agreement yet, but I did feel the discussion was productive in areas that we have differences of opinion," McCarthy said outside the West Wing, adding that the "tone" of Monday's meeting was also "better than any other time we've had discussions."
Biden, in a statement, similarly called the discussion in the Oval Office productive while acknowledging that areas of disagreement persist.
"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," Biden wrote. "While there are areas of disagreement, the Speaker and I, and his lead negotiators ... and our staffs will continue to discuss the path forward."
McCarthy's team and White House negotiators have been meeting daily in an effort to come to a consensus on the budget and the debt ceiling. Negotiators will meet through the night on Monday and the speaker and the president will continue to speak each day, McCarthy said.
The speaker on Monday also acknowledged that he does not plan to waive the House's three-day rule -- which requires that legislation be posted for at least three days to allow House members to study it before it can be voted on.
McCarthy has repeatedly warned that the White House and House GOP must reach a deal this week to avoid default. And if negotiations drag on, waiving the three-day rule could allow the legislation to pass more quickly. However, there are concerns that expediting the legislative process by waiving the rule may lead to members voting to support something they aren't fully informed on.
The speaker said he "would give everybody 72 hours, so everybody knows what they're voting for."
Monday evening's meeting at the White House came after negotiations hit a snag and were put on pause Friday, and representatives of each side spent most of the next two days criticizing the other while defending their own positions.
In a sign of a possible thaw, Biden and McCarthy spoke over the phone as the president was aboard Air Force One returning to Washington after a trip to Japan, a trip cut short so he could return for negotiations. McCarthy told reporters Sunday that the call was "productive." But that came after Biden had sharply criticized Republicans at a news conference in Hiroshima, where he said he wasn't able to promise fellow world leaders gathered for Group of Seven talks that the US would not default.
"I can't guarantee that they will not force a default by doing something outrageous," Biden said shortly before his departure tor the US.
On Monday evening, McCarthy maintained that both he and the president "agree we want to be able to come to an agreement."
Top House Democrat says talks are moving in the 'wrong direction'
In stark contrast to McCarthy and Biden's relatively optimistic tone, House Democratic Leader Hakeem Jeffries said Monday evening asserted that talks are moving in the "wrong direction."
At a hastily called news conference on the steps of the Capitol, Jeffries attacked the GOP for rejecting a White House compromise -- to freeze domestic spending at the current levels. Republicans instead want to roll back spending to previous years' levels and write into law that spending would be capped for several years.
"They've rejected the fact that President Biden is willing to consider freezing spending. It will reduce the deficit by a trillion dollars. This is what the extreme MAGA Republicans say that they want. They rejected. They rejected an unwillingness to not put the country through this again," the New York Democrat said. He also repeatedly refused to say if House Democrats would accept a spending cut, as McCarthy has demanded.
Jeffries' position is critical because McCarthy will almost certainly need House Democratic support to pass any deal cut with the White House.