The White House and congressional Republicans are closing in on a deal to raise the government’s capacity to borrow money, but talks may extend into the holiday weekend.
An emerging agreement would limit most spending for two years, exempting military and veterans programmes.
But debate over issues such as tougher eligibility rules for government aid recipients is holding up a deal.
The US Treasury secretary extended the default date from 1 June to 5 June.
Janet Yellen said without a deal the projected resources of the US would be inadequate to meet the country’s spending commitments during that week.
Such a default would upend the economy and have global impact.
Republicans have been seeking spending cuts in exchange for raising the $31.4tn (£25tn) debt limit, a law which caps how much debt the US government can accrue.
The US Treasury has warned the US could run out of money to pay all of its bills as soon as 1 June, unless Congress lifts the limit to allow the government to borrow more.
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Article URL : https://news.yahoo.com/us-debt-ceiling-congress-heads-173500443.html?fr=sycsrp_catchall