US President Joe Biden’s representatives and Republican Congressmen achieved a principal agreement on raising the country’s public debt ceiling and reduction of budget expenditures during consultations on avoiding a federal debt default on Saturday, APA reports citing the Punchbowl News.
"House Republicans have an agreement in principle with the White House on a debt-limit deal," the portal said.
This involves reaching a preliminary agreement on raising the national debt ceiling, NBC reported. Earlier, Biden and Speaker of the US House of Representatives Kevin McCarthy (Republican, State of California) discussed the remaining issues within consultations on averting a default over the phone.
"Sources said the final details are still being confirmed," NBC noted.
The US administration has called on Congress in recent months to raise the national debt ceiling that is now set at $31.4 trillion. Republicans, who are in control of the House of Representatives, are traditionally skeptical about allowing greater debt and are pushing for reducing government spending.
US Treasury Secretary Janet Yellen has warned Congress that June 5 was the deadline for debt ceiling to be raised. A default in the US if Congress fails to raise the debt ceiling, would be an economic and financial catastrophe, Yellen noted. Biden and Republicans’ leaders in Congress agreed on holding regular consultations to avoid it. The US House of Representatives is expected to vote on the initiative to raise the ceiling of public debt on Tuesday, May 30.