White House and House Republican negotiators are at a stalemate over capping spending levels in the 2024 budget.
Why it matters: The deadlock resulted in a pause in debt ceiling talks on Friday morning as the fiscal cliff draws nearer.
What we’re hearing: “The White House wants to continue to spend more money,” Rep. Dusty Johnson (R-S.D.) told Axios.
- “No deal will be possible as long as that’s their position.”
- The Main Street Caucus chair said the two sides are “really far apart on the topline” and House Speaker Kevin McCarthy (R-Calif.) is “holding strong” on GOP demands to cap discretionary spending at 2022 levels.
The backdrop: Biden faces pressure from his left flank, which is pushing for him to lift the debt ceiling unilaterally via the 14th Amendment.
- McCarthy faces similar pressure from the right, which expects him to deliver significant spending cuts.
Yes, but: On other issues, there appears to be more common ground.
- Welfare work requirements is “an issue where there is not yet agreement, but it was not as big a flashpoint” as discretionary spending, Johnson said.
- “A number of these policy issues are a little easier to find common ground on – things like COVID aid and permitting reform, it’s easier to understand how to draw the lines in a way that is acceptable to both Democrats and Republicans,” Johnson added.
The other side: The White House, while not going as far as to give specifics on the roadblock, concurs that a wide gulf exists.
- They said in a statement to Axios’ Hans Nichols that there are “real differences” and warned that talks will be “difficult.”
