by Katharine Jackson, Steve Holland and Moira Warburton
WASHINGTON, May 28 (Reuters) – U.S. President Joe Biden and Republican U.S. House of Representatives speaker Kevin McCarthy have reached a tentative deal on raising the federal debt ceiling, a source familiar with the negotiations said. .
The White House and Republican negotiators have reached an agreement in principle to avoid a default, two sources familiar with the matter said.
“I’m not sure it’s completely settled. There may be details to finalize. But (a deal) is close enough to move forward,” the second source said.
Joe Biden and Kevin McCarthy spoke on the phone Saturday night for an hour and a half to discuss the deal.
Any political agreement between the White House and the Republican opposition would mark the start of a parliamentary marathon, which could last for a week, with a view to passing legislation by a divided Congress.
The Treasury Department said on Friday that the government would no longer have, as of June 5 and without action from Congress, the means to honor its deadlines.
Specific details of the deal were not immediately released, but negotiators agreed to cap non-military discretionary spending at 2023 levels for two years in exchange for raising the debt ceiling over a similar period, sources told Reuters earlier.
(Written by Andy Sullivan; French version Camille Raynaud)
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