Lawmakers leave D.C. for break without debt limit agreement

House Speaker Kevin McCarthy, R-Calif., on Thursday said his negotiating team would work “24/7” to reach an agreement. Lawmakers are tentatively expected to return to the Capitol on Tuesday, just two days before the Treasury Department says the government could possibly begin defaulting on its debt obligations. Fitch, a credit rating agency,  has put the U.S. government’s perfect credit rating on watch for a potential downgrade.

Will an agreement be reached? Both McCarthy and President Joe Biden have expressed optimism that an agreement can be reached, but the two sides disagree about what spending cuts to implement. Biden has also pushed for higher taxes on the wealthy, which Republicans oppose. Republicans also want to beef up work requirements for government aid recipients, which Democrats oppose.

Dig deeper: Read Leo Briceno’s report in The Stew about how House Democrats are plotting a long-shot debt limit fix.