Ahead of the June 1 deadline by which the Treasury Department anticipates potentially defaulting on our national debt, top leaders have made significant strides on the elements of a bill which would increase the debt limit and include a number of spending restrictions. Negotiators for President Biden and House Speaker Kevin McCarthy (R-CA) held what both sides called productive talks on May 24. Negotiators are moving close to a deal which would include the following major provisions:

• Increase the debt limit until after the 2024 elections
• Rescind any unobligated COVID funds
• Set FY24 and FY25 spending levels at a topline somewhere above FY22 and below FY23

Additional matters that are still being discussed include work requirements for many federal assistance programs, including Medicaid, food assistance and unemployment aid. The other major matter still being discussed is the energy permitting reform proposed by the House which would reduce elements of review before federal agencies approve energy production projects. House Republican leaders said they would adjourn on Thursday for the week-long Memorial Day holiday recess but would call lawmakers back if needed for any votes. Read more here.