US President Joe Biden has proposed freezing some government spending at current levels to raise the debt ceiling and avoid bankruptcy of the US economy. This information was brought forward this Wednesday (24) by the Secretary of the Treasury, Janet Yellen.
This measure would reduce the budget deficit by another $1 billion over 10 years.
The cuts proposed by Biden narrow the gap between the plans of Republicans and Democrats, who are racing against time for a deal to raise the national debt ceiling and avoid a catastrophic disaster. standard of the United States.
Negotiators on both sides planned to resume talks at noon in Washington (5 p.m. in Lisbon), according to a source close to the parties to the agreement, who requested anonymity.
Yellen reiterated that the government could run out of money to meet its payments as early as July 1.
“The president’s budget plan actually proposes a deficit reduction of $3 billion over 10 years,” the secretary of the treasury said at an event of the The Wall Street Journal this Wednesday.
“During these negotiations, the president has already proposed changes that would result in an additional $1 billion deficit reduction,” he explained.
Republicans say their government spending plans have cut the deficit by $4.8 billion in a decade, without cuts to defense and border security.
The White House wants to spread the cuts more evenly, ease the burden on each sector, and also raise some taxes to boost revenues, an idea rejected by some Republicans.
Source: DN
