With the U.S. Potentially one
week away from defaulting on its
debts, member of congress are
leaving town for the memorial
day break without a deal.
The white house and house
Republicans are continuing to
negotiate.
>> In the halls of power, hopes
for a finish line.
Top leaders were careful.
>> They are working on numbers,
we are working on numbers.
>> Staff continues to meet.
I made clear defaulting >> Words
of a possible debt ceiling deal
was ringing.
>> I think they are close.
I think we all know there is
going to have to be give and
take.
And I think they are very close
to it.
>> Key conservatives did not
like talk of a longer debt
ceiling increase without more
concessions.
>> My antenna is up.
It does not seem to meet what
our expectations are in terms of
transformative substance fiscal
reforms.
>> On Twitter, Mike Lee
threatened to hold up any bill
without substantial reform.
Potentially jeopardizing
default.
Progressive like Jamaal bowman
insisted the debt ceiling should
be raised with no concessions.
>> Very concerned.
Republicans Mccarthy raised the
debt limit under trump.
Now because a Democrat is in the
presidency, he has an issue,
that is politics.
That is not governance.
>> Dozens of Democrats took to
the house floor.
>> Extreme Maga Republicans have
needlessly manufactured an
economic crisis.
>> Don't make Americans pay for
Republican hypocrisy.
>> Very few people are in the
behind closed doors talks.
One of them, Patrick McHenry of
North Carolina summing things
up.
>> Nothing is resolved.
Everyone wants to think you can
lock up and bank something.
You cannot until a complete
deal.
>> Joining us to the latest on
the talks.
I keep hearing progress from the
white house.
When are we going to hear the
word agreement?
>> There is no deal until all of
this comes together.
My reporting along with Laura's
reporting is talks have moved
towards what Democrats are
asking for is a longer increase
in the debt ceiling.
Republicans want more
concessions for that.
Otherwise, they've gotten closer
on spending cuts, very close on
permanent reform.
Very tangled up overwork
requirements, food's net
benefits, that is a real
dividing line.
Also including money.
That is what they are working
on.
Also trying to figure out if
they have enough votes on either
side to get through what is
shaping up to be a possible deal
today, tomorrow are critical
days.
>> Republicans have wanted
concessions on spending cuts.
What are they looking for?
>> We looked at the debt itself,
one side of the coin.
The other concern is spending
cuts.
I want to take people through
what Republicans are asking for.
This is the last three years.
The last fiscal year is someone
at the end.
$1.6 trillion in discretionary
funds.
Republicans want to cut that
back to the level it was about
1.5 years ago in fiscal year 22.
That would be $130 billion in
cuts.
It looks like a tiny slice.
That is $130 billion.
Democrats see it as a bigger
deal.
>> In most domestic spending, it
is tied to the defense budget.
I don't hear Republicans or
Democrats talk about cutting the
Pentagon budget.
>> This is a critical concept.
Who gets cut if you have
spending cuts.
Look at a different way of
understanding these numbers.
The discretionary money, art is
in defense than in nondefense.
What Republicans are saying is
they would protect the defense
money and money for veterans,
hundreds of billions of dollars.
The result to get the $130
billion cut would be to cut
everything else by one third.
It will have incredibly
far-reaching repercussions
across the board.
The white house says that kind
of cut if applied on average to
school funding would need 26
million students in schools
across the country that are low
income that would not have
access to different grants and
other help.
They would also affect housing,
vouchers for some 800,000
Americans who use federal
housing vouchers to help with
rent.
Talk about programs for the
elderly.
Meals on wheels is a federally
held program.
It would face cuts of 30%.
The U.S. Border patrol.
They are not a defense agency.
They could see a cut of 30% when
people are reporting on the
surge at the border.
Rail inspections are another
example of someththg getting a
lot of attention.
Concerned about how safe rails
are.
Rail inspectors would also be a
place with a 30% cut.
In short, everything in
government can see that kind of
cut.
Republicans argue all of the
agencies are overfunded, they
have been for years.
Democrats say we are talking
about real lives, people, senior
citizens.
One note.
That kind of spending cut would
not affect social security or
medicare, but it would affect
government agencies, how you see
the government, those kinds of
things.
>>>> Talk about the calendar.
Members leaving for the memorial
day break gives them two days.
How much time do they have?
>> At this point you have to
suspend logic.
If we don't have a deal in the
next two days, they will be
forced to reckon with a
short-term debt lift.
They may have to do that anyway.
That is why these next two days
are critical.
If they get a framework, they
have enough time to write the
bill, have enough time in the
house, stay tuned.
>> Thank you so much.