More stories

  • in

    US debt ceiling talks continue into weekend amid signs deal is close

    Negotiations over America’s looming debt crisis pushed into Saturday amid signs that a deal between Joe Biden’s administration and Republicans was close to being struck even as the deadline for a potentially catastrophic US default was nudged by a few days.The Associated Press reported that work requirements for federal food aid recipients have emerged as a final sticking point in talks, even as Biden had said on Friday that a deal on raising the debt ceiling was “very close”.Biden’s optimism came after the deadline when the US government would run short of funds to pay all its bills was pushed back to 5 June, giving both sides more breathing room but also raising the prospects that talks – which had seemed almost at a deal on Friday evening – could now stretch into next week.On Saturday, Republican House speaker Kevin McCarthy told reporters that he was making “progress” in negotiations with Biden, saying: “We do not have a deal … We are not there yet. We did make progress, we worked well into early this morning and we’re back at it now,” according to Reuters.When asked if Congress is able to meet the 5 June deadline, McCarthy swiftly responded: “Yes,” the Hill reports.Asked if a deal could be announced on Saturday, he replied: “I don’t know about today”.Biden and McCarthy have seemed to be narrowing on a two-year budget-slashing deal that would also extend the US debt limit into 2025 past the next presidential election.Both sides have suggested one of the main holdups is a Republican effort to boost work requirements for recipients of food stamps and other federal aid programs, a longtime Republican goal that many Democrats have strenuously opposed.The White House spokesman Andrew Bates said Republican proposals on the issue were “cruel and senseless” and said Biden and Democrats would oppose them.But at the same time the Louisiana congressman Garret Graves, one of McCarthy’s negotiators, was blunt when asked if Republicans might relent, saying: “Hell no, not a chance.”Bates condemned House Republicans in a statement to Politico, accusing them of “threatening to trigger an unprecedented recession and cost the American people over 8 million jobs unless they can take food out of the mouths of hungry Americans.”Americans and the world have watched with growing fear and and anger as the negotiating brinkmanship that could throw the US economy into chaos has dragged on in yet another repeat of the regular political theater that always seems to surround the issue in Washington.Yet Biden was upbeat as he left for the Memorial Day weekend at Camp David, declaring: “It’s very close, and I’m optimistic.”In a blunt warning, the Treasury secretary, Janet Yellen, said on Friday that failure to act by the new date for default would “cause severe hardship to American families, harm our global leadership position and raise questions about our ability to defend our national security interests”.Anxious retirees and others were already making contingency plans for missed checks, with the next Social Security payments due next week.Any deal struck by the White House and Republican negotiators would need to be a political compromise, with support from both Democrats and Republicans needed to pass the divided US Congress.McCarthy has promised to give his Republican members 72 hours to go through any deal, pushing back a vote to at least Tuesday and possibly much later in the week, depending on when a deal can be announced.On Saturday, Axios revealed that independent senator Kyrsten Sinema has joined the negotiations, according to sources familiar with the matter.The outlet reported that as Sinema attempts to use her newfound independent position to help negotiators reach a compromise, some Democratic lawmakers are privately concerned that her involvement might limit key renewable energy proposals.Currently, Republicans are seeking to make modifications to the National Environmental Policy Act in order to remove legal restrictions for oil and gas companies. Meanwhile, Democrats have urged the Biden administration and Democratic congressional leaders to oppose any Nepa changes.Earlier this month, Arizona’s representative Raúl Grijalva, a ranking member of the House natural resources committee, sent a letter – along with 79 other Democrats – to Biden and Democratic leadership, urging them to oppose environmental rollbacks in any deal.Ultimately, focus would especially be on the reaction to rightwing Republicans in the House, especially those in the Freedom Caucus mostly aligned with former US president Donald Trump.“Raising the debt ceiling is not a ‘concession’ by Republicans – it’s their constitutional duty,” the New York Democratic representative Dan Goldman tweeted on Friday.“Republicans are extorting the American people by threatening to crater the economy to extract unreasonable demands they’d never be able to get in the ordinary appropriations process,” he added.Several credit-rating agencies have said they have put the US on review for a possible downgrade, which would push up borrowing costs and undercut its standing as the backbone of the global financial system.A similar 2011 standoff led Standard & Poor’s to downgrade its rating on US debt, hammering markets and sending the government’s borrowing costs higher. More

  • in

    Impeachment proceedings against scandal-hit Texas attorney general begin

    Texas’s Republican-led house of representatives launched historic impeachment proceedings against attorney general Ken Paxton on Saturday as the scandal-plagued lawyer called on supporters to protest a vote that could lead to his ouster and Donald Trump came to his defense.The house convened on Saturday afternoon to debate whether to impeach and suspend Paxton from office over allegations of bribery, abuse of public trust and that he is unfit for office. They’re just some of the accusations that have trailed Texas’s top lawyer for most of his three terms.In opening statements, the state congressman Charlie Geren, a member of the committee that investigated Paxton, said the attorney general had called lawmakers and threatened them with political “consequences”.As the charges against Paxton were read, some lawmakers shook their heads. Impeachment is expected to be debated for four hours, followed by closing remarks and the vote.The hearing could result in a remarkably sudden downfall for one of the Republican party’s most prominent legal combatants, who in 2020 asked the US supreme court to overturn president Joe Biden’s electoral defeat of Donald Trump. Only two officials in Texas’s nearly 200-year history have been impeached.Paxton, 60, has called the impeachment proceedings “political theater” and on Friday, he asked supporters “to peacefully come let their voices be heard at the Capitol tomorrow”.Paxton has been under FBI investigation for years over accusations that he used his office to help a donor and was separately indicted on securities fraud charges in 2015, though he has yet to stand trial.If impeached, Paxton would be removed from office pending a senate trial, and it would fall to the Republican governor, Greg Abbott, to appoint an interim replacement. Final removal would require a two-thirds vote in the senate, where Paxton’s wife’s, Angela, is a member.To Paxton’s detractors, the rebuke was years overdue.In 2014, he admitted to violating Texas securities law, and a year later he was indicted on securities fraud charges in his hometown near Dallas, accused of defrauding investors in a tech startup. He pleaded not guilty to two felony counts carrying a potential sentence of five to 99 years.He opened a legal defense fund and accepted $100,000 from an executive whose company was under investigation by Paxton’s office for Medicaid fraud. An additional $50,000 was donated by an Arizona retiree whose son Paxton later hired to a high-ranking job but was soon fired after displaying child pornography in a meeting. In 2020, Paxton intervened in a Colorado mountain community where a Texas donor and college classmate faced removal from his lakeside home under coronavirus orders.But what ultimately unleashed the impeachment push was Paxton’s relationship with the Austin real estate developer Nate Paul.In 2020, eight top aides told the FBI they were concerned Paxton was misusing his office to help Paul over the developer’s unproven claims that an elaborate conspiracy to steal $200m of his properties was afoot. The FBI searched Paul’s home in 2019, but he has not been charged and denies wrongdoing. Paxton also told staff members he had an affair with a woman who, it later emerged, worked for Paul.The impeachment accuses Paxton of attempting to interfere in foreclosure lawsuits and issuing legal opinions to benefit Paul. Its bribery charges allege that Paul employed the woman with whom Paxton had an affair in exchange for legal help and that he paid for expensive renovations to the attorney general’s home.A senior lawyer for Paxton’s office, Chris Hilton, said on Friday that the attorney general paid for all repairs and renovations. More

  • in

    DeSantis’s limp start to 2024 race delights Trump but battle is not over

    Never work with animals, children or egotistical space billionaires. There’s a lesson in there that Governor Ron DeSantis of Florida learned the hard way when he used Elon Musk’s Twitter Spaces social media platform to announce his run for US president.Thousands of listeners were greeted with long silences, odd snatches of music and the sound of Musk, would-be kingmaker of the American right, muttering that the “the servers are straining somewhat”. The glitch was soon being described as a “DeSaster”, one of the most embarrassing campaign fiascos in memory.No one was more gleeful than Donald Trump, who regards DeSantis as his principal rival for the Republican nomination in 2024. But for those in the party who crave an alternative to the disgraced former president, it fueled disquiet about his putative rival’s big match temperament – and encouraged them to seek other options. No one is writing DeSantis off, but he enters the race weakened and in a wide, scattered field of lesser candidates that Trump now dominates.“DeSantis’s launch was awful; Trump’s comments are nuts,” tweeted Bill Kristol, a founding director of Defending Democracy Together who served in the Ronald Reagan and George HW Bush administrations. “Doesn’t every normal Republican elected official and donor think the party can (and should!) do better?”The Grand Old Party has been transformed since the moment that Trump staged a comparatively lo-tech campaign launch by trundling down an escalator at Trump Tower in New York in 2015. The celebrity businessman soon energised grassroots supporters, shook the Republican establishment and prevailed in the primary election against divided opposition.Eight years on, Trump, now 76 and facing myriad criminal investigations, has again established himself as the clear frontrunner for the Republican nomination. He has spent the months since he launched his own campaign working to destroy the once-ascendant DeSantis, 44, who has tried to remain above the fray.In the end Trump did not succeed in knocking the man he brands “Ron DeSanctimonious” out of the race but did sow doubts about his record, personality and loyalty. The governor did himself no favors by giving mixed messages on US support for Ukraine, picking a thankless fight with Disney and failing to impress during in-person meetings.Last month, when DeSantis went overseas on a “trade mission” and met business leaders in London, the Politico website quoted attendees as saying he “looked bored” and “stared at his feet” and describing him as “horrendous” and “low wattage”. One reportedly said: “It felt really a bit like we were watching a state-level politician. I wouldn’t be surprised if [people in attendance] came out thinking ‘that’s not the guy.’”Far from closing the gap on Trump during a book tour, DeSantis instead saw it widen to 30 percentage points or more in some opinion polls. Some of his potential donors have expressed buyers’ remorse and put their financial backing on hold.Joe Walsh, a former Republican congressman from Illinois, said: “Everybody thought it was a two-horse race; it’s a one-horse race. The Republican establishment, the Republican donors, Republican media, everybody wants Trump gone so they’ve all put their hopes in DeSantis and now that’s gotten pretty shaky over the last four months because the more people get to know him, they don’t like him.”Walsh, who challenged Trump in the 2020 primaries, added: “You’re going to see a bunch of people get in now because they think DeSantis is weak and so they want to be the number two guy.”This week’s shambolic campaign launch only reinforced the view that DeSantis was overhyped as a “Trump slayer” and peaked too soon. But there is a constituency of Republicans unwilling to return to twice-impeached, once-indicted Trump, especially after disappointing midterm election results. They hunger for another choice to take on Joe Biden.Art Cullen, editor of the Storm Lake Times in Iowa, which holds the first Republican caucuses early next year, said: “I was talking with a moderate retired Republican schoolteacher just this morning from western Iowa and she doesn’t like the meanness of Trump and DeSantis, so she’s looking for an alternative. Whether that’s Tim Scott or Asa Hutchinson or Chris Sununu, who knows?”Ambitious Republicans smell blood. This week saw Tim Scott, the only Black Republican senator, throw his hat in the ring with a brand of optimism that contrasts with Trump and DeSantis’s dark rhetoric. But Scott, 57, has only 1% of support among registered Republicans, according to Reuters/Ipsos polling.He joined fellow his South Carolinian Nikki Haley, a former governor of the state and Trump’s ambassador to the United Nations. The 51-year-old has emphasised her relative youth compared with Biden and Trump as well as her background as the daughter of two Indian immigrants. She attracts about 4% support among Republican voters.Notably DeSantis, Scott and Haley have been reluctant to directly denounce Trump, preferring to let allies do the dirty work or make oblique remarks about the need to end a culture of losing or embrace greatness rather than grievance. Their reticence is a striking insight into Trump’s lock on the party’s base.But one candidate, the former Arkansas governor Asa Hutchinson, has been more forthright in calling for Trump to drop out of the race to deal with his hush money criminal case in New York. Hutchinson, 72, has touted his experience leading the deeply conservative state but has limited name recognition nationwide.Other potential contenders include Mike Pence, 63, a former vice-president who broke with Trump over the January 6 insurrection; Chris Christie, 60, a former governor of New Jersey who is a pugnacious Trump critic; and Chris Sununu, 48, the governor of New Hampshire who has said he does not believe Trump can beat Biden.Glenn Youngkin, 56, a hedge fund manager turned Virginia governor who has made much of parents’ rights in schools, is said to be reconsidering a White House bid after previously ruling it out. Meanwhile Vivek Ramaswamy, 37, a former biotechnology investor and executive, is already waging a quixotic campaign.The bigger the field, the more that Trump stands to benefit. As in 2016, a bevy of candidates may well divide the anti-Trump vote while his base holds fast. It could put pressure on DeSantis to set himself apart by taking off the gloves against the former president, a risky strategy that backfired for fellow Floridians Jeb Bush and Marco Rubio in 2016.Wendy Schiller, a political science professor at Brown University in Providence, Rhode Island, said: “The only way Ron DeSantis peels off Trump voters is if he fights as hard and dirty as Trump because they’re looking for a champion who will break boundaries, break the rules and really go for it. That’s what they’re looking for: are you willing to go toe to toe and stand up to Trump in every way?”DeSantis is still relatively well placed. He was polling in double digits and boasted of a war chest of more than $110m before he even entered the race. His team said he brought in $8.2m in the first 24 hours after his campaign launch, breaking a record of $6.3m held by Biden.DeSantis can also point to a list of rightwing legislative accomplishments to make the case that he is effectively Trump without the drama. His opposition to coronavirus pandemic restrictions and his “anti-woke” agenda guarantee favorable coverage from Rupert Murdoch’s Fox News network and other rightwing media.He has many friends in the Florida Republican party despite Trump having made the state his adopted home. Christian Ziegler, the state party chairperson, said he had a “great relationship” with both men. “The organisation is going to stay neutral and I encourage all our party leaders to do the same because, no matter who wins the primary, we’ve got to make sure that we go get the voters of whoever loses to cross over and shake hands and vote for whoever our Republican nominee is.“We’ve got to keep our eye on what the reality is and what the real goal is. The real enemy here are the Democrats and what they’re trying to do to our kids, our communities, our state, our country.”Democrats, for their part, exulted in DeSantis’s campaign launch debacle and give his candidacy short shrift.Antjuan Seawright, a party strategist based in Columbia, South Carolina, said: “He has a math problem, meaning he is always going to be considered a runner-up to Trump, who is the leading candidate in their party. He has a policy problem because in many cases he’s trying to out-Trump Trump when it comes to policy.“He has a political problem: he has not had his hood checked or his tyres kicked outside of Florida and so he’s never been battle-tested. He has a constituency problem because with so many people in the race, where does his following come from?”Seawright added: “The Republican primary, quite frankly, has calcified around the idea of nominating Trump again.” More

  • in

    Negotiators edge closer to debt ceiling deal as Yellen extends deadline to 5 June

    Democratic and Republican negotiators struggled on Friday to reach a deal to raise the US government $31.4tn debt ceiling, as a key Republican cited disagreements over work requirements for some benefit programs for low-income Americans.On Friday, the treasury secretary, Janet Yellen, said the US would run out of money to pay its bills by 5 June, a slight extension of her earlier 1 June prediction.Talks had been reported to be close to conclusion, as lawmakers sought to avoid a disastrous and unprecedented default. Wall Street and European shares rose as the White House and congressional Republicans worked on the final touches of a package to present to Congress.Negotiators appeared to be nearing a deal to lift the limit for two years and cap spending, with agreement on funding for the Internal Revenue Service (IRS) and the military, Reuters quoted a US official as saying. But a White House official told the same outlet talks could easily slip into the weekend.Lawmakers were placed on call after leaving Washington for the Memorial Day holiday.“We have made progress,” the lead Republican negotiator, Garret Graves, told reporters. “I said two days ago, we had some progress that was made on some key issues, but I want to be clear, we continue to have major issues that we have not bridged the gap on, chief among them work requirements.”The Republican House speaker, Kevin McCarthy, told reporters at the Capitol: “We know it’s crunch time. We’re not just trying to get an agreement, we’re trying to get something that’s worthy of the American people, that changes the trajectory.”Democrats indicated Joe Biden was willing to consider spending cuts, including to planned extra funding for the IRS, a target of rightwing attacks, the Washington Post reported. Citing an anonymous official, Reuters said the deal would raise the ceiling for two years “while capping spending on everything but military and veterans”.On Thursday night, the North Carolina congressman Patrick McHenry, a Republican negotiator, said: “I think there’s a sense of understanding from both teams that we have serious issues still to work out and come to terms with, and that’s going to take some time. That’s all there is to it.”Any deal would have to pass the House and Senate, which typically takes days to complete.Yellen has warned for months that failing to raise the debt ceiling would be a “catastrophe”. In a letter to Congress released on Friday, she said the federal government was due to make more than $130bn in payments in the first few days of June, including payments to veterans and social Security and Medicare recipients, and leaving the treasury with “an extremely low level of resources”.Raising the debt ceiling is usually a formality, if subject to political grandstanding. Republicans raised the ceiling without preconditions three times under Donald Trump, while adding to the debt with tax cuts and spending rises.But McCarthy has only a five-seat majority and is beholden to the far right of his party, which is demanding stringent cuts.On Thursday the White House press secretary, Karine Jean-Pierre, told reporters: “We’re fighting against Republicans’ extreme, devastating proposal that would slash … law enforcement, education, food assistance, all of these things are critical to American families who are just trying to make ends meet.”Most analysts say a default would cast the global economy into market chaos and probable recession. This week, the US treasury cash balance dropped to $49.5bn, prompting Bloomberg TV to report: “There are 24 individuals on the Bloomberg Billionaires list who have more money than the treasury does right now.”Reuters spoke to David Beers, a former head of sovereign ratings for Standard & Poor’s, which in 2011 reacted to a similar Republican-fueled debt standoff by downgrading its US credit rating, a move that stoked market instability.“We thought that the political polarisation in the country was likely to endure, and secondly, we were also concerned about the rising trajectory of debt,” Beers said. “On both of our counts, our expectations, if anything … have been exceeded. I have no doubt in my mind that was the right call.”Now, some on the Republican right, including Trump, the former president and current presidential frontrunner, say the party should let the US default if Biden refuses to cave.The deputy treasury secretary, Wally Adeyemo, told CNN the government did not have the capability to “triage” payments if the debt ceiling is not raised. Adeyamo also said invoking the 14th amendment – which says public debt “shall not be questioned” – would not solve the problem.Adeyemo said: “I don’t have any confidence that we have the ability to be able to do a type of prioritisation that will mean that all seniors, all veterans, all Americans get paid.”Some House Democrats are upset at being kept out of negotiations, and at how Biden has fielded advisers rather than consistently getting involved himself. Democrats have also bemoaned how Republicans seem to be winning the messaging war, public polling showing support for spending cuts – and a ceiling raise.Rosa DeLauro, from Connecticut, told Politico: “The scale of the cuts [demanded by Republicans] is staggering, which really the public knows very little about. The president should be out there.”Biden was due to meet winning basketball teams at the White House on Friday, then travel to the presidential retreat at Camp David in Maryland.Steven Horsford of Nevada, chair of the Congressional Black Caucus, said: “They need to use the power of the presidency … I need the American people to know that Democrats are here fighting, working, prepared to reach an agreement to avoid a default and only the White House, the president, can explain that in this moment.”Biden has not been silent. On Thursday, at the White House, he said Republicans wanted “huge cuts” that would hurt ordinary Americans.“It’s time for Congress to act, now,” he said, adding: “Under my administration, we’ve already cut the deficit by $1.7tn in our first three years. But Speaker McCarthy and I have a very different view of who should bear the burden of additional efforts to get our fiscal house in order.“I don’t believe the whole burden should fall on the backs of middle-class and working-class Americans. My House Republican friends disagree.”
    Reuters contributed reporting More

  • in

    Judge pauses South Carolina abortion ban; emerging debt ceiling agreement ‘has fewer cuts than expected’ – as it happened

    From 5h agoA judge has blocked a South Carolina law enacted this week that bans most abortions past the six-week mark, a point at which most women are not yet aware they are pregnant, the Associated Press reports.The ruling by judge Clifton Newman is the latest complication conservative state lawmakers have faced as they move to cut off abortion access following the supreme court’s decision last year overturning Roe v Wade and allowing states to restrict the procedure entirely. Newman ordered the law put on hold until the state supreme court can review it, in a ruling that came 24 hours after the law was signed by governor Henry McMaster, the AP reports.The state now reverts to a previous law that bans abortions at about the 20-week mark.Talks are ongoing over reaching a debt ceiling deal, amid reports that negotiators for Joe Biden and Kevin McCarthy are nearing an agreement that would cut some government spending while preserving many of the White House’s priorities. Meanwhile, the GOP-led push to tighten abortion access was dealt a setback in South Carolina, where a judge temporarily halted a newly passed ban on procedures past the sixth week of pregnancy until the state supreme court can review it.Here is what else happened today:
    Officials in Ron DeSantis’s administration have asked lobbyists for contributions to his newly announced presidential campaign, raising ethical and potentially legal questions.
    Texas lawmakers could as soon as today oust the state’s attorney general over an array of misconduct.
    In Iowa, Republican governor Kim Reynolds signed a bill curtailing children’s access to information about gender and sexuality in schools.
    No matter how the debt limit standoff is resolved, the United States is on a worrying financial path, a government report concludes.
    North Dakota’s governor Doug Burgum is poised to jump into the presidential race.
    The Republican presidential field will gain a new entrant early next month, when North Dakota governor Doug Burgum announces his campaign for president, the Washington Post reports.Burgum does not have much of a national profile, and it’s unclear how he will differentiate himself from the race’s frontrunner Donald Trump and his strongest challenger, Florida governor Ron DeSantis. Burgum has signed a law banning almost all abortions in the reliably-Republican state, and another cracking down on transgender rights.Despite his pursuit of rightwing policies typical of Republican governors nationwide, Burgum complained to the editorial board of North Dakota newspaper the Forum that many Americans feel alienated from the political process. “There’s definitely a yearning for some alternatives right now,” he said.Just what is keeping the debt ceiling negotiators from finding a deal? Republican House speaker Kevin McCarthy said earlier today that overall government spending was the biggest point of contention.But CNN reports that Garret Graves, the Louisiana congressman who is McCarthy’s lead negotiators with Joe Biden’s deputies, said the GOP is insisting on stricter work requirements for government aid programs:Studies have shown that more stringent requirements for government aid recipients to work undercut the programs’ effectiveness. Perhaps most importantly for the talks aimed at warding off a US government default, several Democrats say they’re opposed to tightening work requirements, potentially threatening the path to enactment of any compromise that includes such provisions.Let’s have a quick vibe check of the US Capitol, home to both behind-closed-doors negotiations that may determine whether the world’s largest economy is brought to its knees by a debt default in a few days, and tour groups.Those who lead visitors around the Capitol are maintaining their sense of humor about all this, the Associated Press finds:Some of the tourists are, unfortunately, not, The Messenger reports:Here’s video of the moment a Louisiana State University women’s basketball player fainted onstage at the White House:The team’s coach told reporters on scene that the player was “fine”.At the White House, Joe Biden was in the middle of remarks honoring the Louisiana State University women’s basketball team for winning the NCAA title when someone collapsed onstage.The Guardian’s David Smith was covering the event when it happened, and reports the person has been taken out of the room.The South Carolina anti-abortion bill now on hold was approved on Tuesday. Here’s a bit more on what it contained:If signed into law the bill would ban most abortions at about six weeks, a period when most people are unaware they are pregnant.The Fetal Heartbeat and Protection From Abortion Act would ban abortions at the earliest detection of cardiac activity, and, if signed into law, would set up a judicial battle over whether the bill is constitutional. The bill already passed the state house legislature with overwhelming support, and is part of a wave of anti-abortion legislation passed or proposed throughout the country since the supreme court overturned Roe v Wade last year and eliminated the constitutional right to abortion.Abortion access in the south – which already has some of the most restrictive laws in the country – has been dramatically curtailed with new legislation in North Carolina and Florida. A series of Texas laws prohibit abortions after six weeks and make performing abortions a felony punishable up to life in prison.The Guardian’s Nick Robins-Early reported for us on the decision earlier this week:Here’s some markets news. Traders are in a better mood.Reuters reports:
    Wall Street jumped on Friday following progress in negotiations on raising the U.S. debt ceiling, while chip stocks surged for a second straight day on optimism about artificial intelligence.After several rounds of talks, U.S. President Joe Biden and top congressional Republican Kevin McCarthy appeared to be nearing a deal to increase the government’s $31.4 trillion debt limit for two years, while capping spending on most items, a U.S. official told Reuters.The Dow Jones Industrial Average was set to end a five-day losing streak, while the Nasdaq Composite Index jumped to its highest level since August 2022.”
    Investors were closely watching debt ceiling talks as Biden and McCarthy still seemed at odds over several issues heading into the long weekend, with the U.S. stock market closed on Monday for the Memorial Day holiday.“All the signs point to a deal getting done and this rally being sustained, but if we get through the weekend and we don’t have a deal or it falls apart in some way, then we’re going to wake up Tuesday morning to some pretty material losses,” said Scott Ladner, chief investment officer at Horizon Investments in Charlotte, North Carolina.
    It’s an amazing/excruciating time to be alive when waiting for a debt ceiling deal. Into every news vacuum a little vacillation, vacuousness and vim must rush.Here’s a news “snap” from Reuters, moments ago.
    DEBT CEILING DEAL IS POSSIBLE ON FRIDAY BUT COULD EASILY SLIP INTO WEEKEND – BIDEN ADMINISTRATION OFFICIAL.”
    As we wait for more information, here’s a brilliant tweet from a CNN reporter/producer.Democrats are buoyant in Minnesota after a powerhouse legislative session and former US president Barack Obama has noticed and is holding the state up as an example and a fillip for his politics and party.“If you need a reminder that elections have consequences, check out what’s happening in Minnesota,” he tweeted earlier today.Obama further tweets that: “Earlier this year, Democrats took control of the State Senate by one seat after winning a race by just 321 votes. It gave Democrats control of both chambers of the state legislature and the governor’s mansion.“Since then, Minnesota has made progress on a whole host of issues – from protecting abortion rights and new gun safety measures to expanding access to the ballot and reducing child poverty. These laws will make a real difference in the lives of Minnesotans.”And a further optimistic note.The Minpost.com article Obama linked to in the first tweet describes the legislative session just ended as “transformational” and “bonkers” depending on your party.The so-called DFL, which stands for Democratic Farmer Labor party, aka the Democrats in Minnesota, “codified abortion rights, paid family and medical leave, sick leave, transgender rights protections, drivers licenses for undocumented residents, restoration of voting rights for people when they are released from prison or jail, wider voting access, one-time rebates, a tax credit aimed at low-income parents with kids, and a $1 billion investment in affordable housing including for rental assistance,” the publication noted.As Republican legislatures continue their march to the right, Iowa’s latest move is to ban teachers from raising gender identity and sexual orientation issues with students up to grade six (typically 11-years-old), and all books depicting sex acts will be removed from school libraries, under a bill Republican governor Kim Reynolds signed today.The Associated Press reports:
    The new law is among similar measures that have been approved in other Republican-dominated statehouses around the country. As with many of those proposals, Iowa Republicans framed their action as a commonsense effort to ensure that parents can oversee what their children are learning in school and that teachers not delve into topics such as gender and sexuality.
    Despite the opposition of all Democratic legislators, Republicans who hold large majorities in Iowa’s state House and Senate approved the measure in April and there was little doubt that Reynolds would sign it; she had made issues related to gender identity and sexuality a focal point of her legislative agenda this year.
    “This legislative session, we secured transformational education reform that puts parents in the driver’s seat, eliminates burdensome regulations on public schools, provides flexibility to raise teacher salaries, and empowers teachers to prepare our kids for their future,” Reynolds said in a statement.
    Under the new law, school administrators also would be required to notify parents if students asked to change their pronouns or names. Religious texts will be exempt from the library ban on books depicting sex acts.
    Democrats and LGBTQ+ groups argued that the restrictions would hurt children by limiting their ability to be open with teachers about gender and sexuality issues and to see their lives reflected in books and other curriculum.
    The law also requires schools to post online a list of books in libraries, along with instructions for parents on how to review them and classroom instructional material, and to request that any material be removed. Schools would need parental approval before they could give surveys to students related to numerous topics, including mental health issues, sex and political affiliation.
    This builds on two bills that Reynolds signed into law earlier in the year, restricting the restrooms transgender students can use and banning gender-affirming medical care, such as puberty blockers, for people younger than 18.
    The anti-abortion law that a judge in South Carolina just blocked is similar to a ban on abortion once cardiac activity can be detected that lawmakers there had passed in 2021.The Associated Press adds:
    The state supreme court decided previously that the 2021 law violated the state constitution’s right to privacy. Legislative leaders said the new law makes technical tweaks. But judge Clifton Newman said: “The status quo should be maintained until the supreme court reviews its decision. It’s going to end up there.”
    Tuesday’s law went into effect immediately after it was signed and Planned Parenthood reported that nearly all of the 75 women with appointments for abortions over the next several days appeared to be past six weeks pregnant, an attorney for the women’s health group, Kathleen McDaniel said, who said the harm to women “is happening. It has already happened.”
    The South Carolina measure joins stiff limitations pending in North Carolina and Florida, states that had been holdouts providing wider access to the procedure.
    We are awaiting news of a debt ceiling deal, amid reports that negotiators for Joe Biden and Kevin McCarthy are nearing an agreement that would cut some government spending while preserving many of the White House’s priorities. Meanwhile, the GOP-led push to tighten abortion access was dealt a setback in South Carolina, where a judge temporarily halted a newly passed ban on procedures past the sixth week of pregnancy until the state supreme court can review it.Here is what else has happened today:
    Officials in Ron DeSantis’s administration have asked lobbyists for contributions to his newly announced presidential campaign, raising ethical and potentially legal questions.
    Texas lawmakers could as soon as today oust the state’s attorney general over an array of misconduct.
    No matter how the debt limit standoff is resolved, the United States is on a worrying financial path, a government report concludes.
    Shortly after Roe v Wade was overturned, an Indiana doctor went public with the story of a 10-year-old rape victim from Ohio who had to seek an abortion in the state, which prompted Indiana’s Republican attorney general to demand that the doctor be disciplined for her statements. The Guardian’s Poppy Noor reports on a new development in the case:The Indiana state medical board has ruled that it will allow Dr Caitlin Bernard to continue practicing in Indiana after she spoke out about a 10-year-old rape victim who traveled to Indiana for abortion care due to restrictions in the girl’s own state of Ohio.The doctor will not lose her license, although the seven-person board ruled that Bernard violated patient privacy laws in discussing the 10-year-old’s case with media. Bernard was not found to have violated reporting requirements about child abuse in the case – another charge against her.The board was asked by the state attorney general to discipline Bernard last summer, in a nationally watched case that has drawn accusations of being motivated by anti-abortion politics.As the debt ceiling negotiations have worn on, progressive Democrats have called on Joe Biden to consider invoking the constitution’s 14th amendment to continue paying the government’s bills, even if no increase is agreed on.Biden never seemed that willing to entertain the idea, and in an interview with CNN today, deputy Treasury secretary Wally Adeyemo confirmed the idea was off the table:The Guardian’s Martin Pengelly reports that Donald Trump was the victim yesterday of a roasting from an unusual party – his own son:Donald Trump Jr accidentally insulted his father on Thursday night, mixing up his words while trying to condemn Ron DeSantis, Donald Trump’s closest rival for the Republican presidential nomination.“Trump has the charisma of a mortician and the energy that makes Jeb Bush look like an Olympian,” Trump Jr said on his online show, Triggered With Don Jr, on the Rumble video platform on Thursday night.Jeb Bush was a former governor of Florida and party establishment favourite when Trump Sr won the Republican primary in 2016.DeSantis, the current governor of Florida, made his 2024 campaign official on Wednesday, with a glitch-filled launch on Twitter.As Ron DeSantis’s presidential campaign heats up, there’s still the matter of his ongoing fight with entertainment giant Disney over the Florida governor’s approach to gay and transgender rights. The Guardian’s Richard Luscombe takes a look at the feud, and what it might mean for DeSantis’s White House bid:It has become one of the most compelling Disney stories ever told, but so far without a happily ever after. In fact, the entrance this week of Florida’s Republican governor Ron DeSantis into the race for his party’s presidential nomination only adds gasoline to his raging feud with the theme park giant over diversity and transgender rights.It’s a battle that is, conversely, both an essential ingredient to the culture war agenda DeSantis believes will win him the White House in 2024; and a headache he could well do without as he attempts to prove his credentials as a fiscally responsible conservative.From the moment Disney’s bosses dared to speak out in March 2022 against DeSantis’s notorious parental rights in education bill, the so-called “don’t say gay” law that outlaws discussion in Florida’s classrooms of sexual orientation and gender identity, the governor climbed aboard a rollercoaster he doesn’t seem to want to get off.“DeSantis is running for president and looking for issues that will appeal to potential Republican primary voters all across the country,” said Aubrey Jewett, professor of political science at the University of Central Florida, and a long-time Disney observer.“Certainly the main reason for attacking Disney is he believes it will increase his name recognition and visibility in a positive way, but it doesn’t make a lot of sense. More

  • in

    Will Republicans get behind Tim Scott? – podcast

    Senator Tim Scott of South Carolina formally launched his presidential campaign on Monday, throwing his hat into the Republican ring.
    Scott leans heavily into his Christian identity and has vowed to sign legislation if he becomes president that would endear himself to conservatives, but his chances of success appear slim. Yet he’s decided to present a more optimistic view of the US in his campaign – an opposing tactic to most Republicans, including his main challenger … Donald Trump.
    This week Jonathan Freedland speaks to political historian Leah Wright Rigueur and politics reporter for The State Joseph Bustos about Scott’s chances of rallying the Republican base

    How to listen to podcasts: everything you need to know More

  • in

    US House adjourns for holiday weekend without debt ceiling deal

    The US House adjourned on Thursday for the Memorial Day holiday weekend without any deal reached on the debt ceiling, as America creeps closer to a potential default that could wreak havoc on the economy and global markets.Lawmakers left Washington for their home districts as advisers to the House speaker, Republican Kevin McCarthy, and members of the Biden administration continued to haggle over the details of a deal to raise the debt ceiling and limit government spending.“Speaker McCarthy and I have had several productive conversations, and our staffs continue to meet – as we speak, as a matter of fact – and they’re making progress,” Biden said on Thursday at the White House. “There will be no default, and it’s time for Congress to act now.”Emphasizing that default was not an option, Biden said the negotiations have focused on creating the outlines of a budget that can win bipartisan support, as the president and McCarthy have clashed over their “competing visions for America”.“Speaker McCarthy and I have a very different view of who should bear the burden of additional efforts to get our fiscal house in order,” Biden said. “I don’t believe the whole burden should fall on the backs of middle-class and working-class Americans. My House Republican friends disagree.”With just one week left before the potential default deadline of 1 June, negotiators plan to continue their efforts to reach an agreement over the holiday weekend. Speaking to reporters on Capitol Hill on Thursday, McCarthy said the previous day’s talks continued well past midnight, and negotiators were meeting around the clock until a deal is reached.“I thought we made some progress,” McCarthy said. “There’s still some outstanding issues, and I’ve directed our teams to work 24/7.”Congressman Patrick McHenry of North Carolina, one of the chief Republican negotiators in the talks, said he did not expect a deal to be announced on Thursday.“Everything’s sensitive at this moment,” McHenry told reporters. “There’s a balance that has to be struck, and there’s a lot more work that has to be done. But the work that we’re doing centers in on a shorter and shorter array of issues.”Defense spending has emerged as a key point of tension in the talks, as congressional Republicans have pushed to exempt the Pentagon from potential budget cuts. Democrats have flatly rejected that proposal, insisting they will not allow non-defense priorities like education and healthcare to bear all of the proposed cuts.According to the Associated Press, Republicans have expressed openness to the idea of keeping defense spending at the levels proposed by the Biden administration while redirecting some of the funding previously allocated to the Internal Revenue Service.As negotiators edged closer to a deal, some hard-right lawmakers complicated matters for McCarthy by adding additional demands to their budgetary wishlist.skip past newsletter promotionafter newsletter promotionMembers of the House Freedom Caucus sent a letter to McCarthy on Thursday calling on him to add border security provisions to the debt ceiling bill while cutting funding to build a new headquarters for the Federal Bureau of Investigation.They also demanded that the treasury secretary, Janet Yellen, provide evidence to substantiate the threat of a default as early as 1 June.“The power of an undivided Republican party guided by conservative principles cannot be overstated,” the Republican members wrote to McCarthy. “As you navigate the debt limit debate, you are the steward of this unity and will determine whether it continues to strengthen and places a historic stamp on this Congress or evaporates.”The letter underscored that McCarthy will probably need some Democratic support to get a debt ceiling compromise through the House, but his colleagues on the other side of the aisle voiced sharp criticism of Republicans’ proposed spending cuts and their decision to leave Washington without a deal.“Republicans have decided to skip town,” the progressive congresswoman Alexandria Ocasio-Cortez of New York said in a floor speech on Thursday. “They are accusing Democrats, saying we spend too much. For anyone that wants to entertain that thought, I ask you to think about the last time a person has said in this country that the government does too much for them, that their social security check was too high, that teachers are paid too much. When was the last time anyone has heard or seen that?” More

  • in

    Joe Biden vows ‘there will be no default’ after latest round of debt ceiling talks with Republicans – as it happened

    From 3h agoJoe Biden said he has had “several productive conversations” with Republican House speaker Kevin McCarthy, and despite outstanding differences over raising the debt ceiling, “there will be no default”.“The only way to move forward is with a bipartisan agreement, and I believe we’ll come to an agreement that allows us to move forward and that protects the hardworking Americans in this country,” the president said at the White House during an event to introduce Charles Q Brown Jr, his nominee for chairman of the joint chiefs of staff.He spoke positively of his negotiations with McCarthy, and said, “our staffs continue to meet, as we speak as a matter of fact, and they’re making progress. I made clear, time and again, that defaulting on our national debt is not an option … congressional leaders understand that and they’ve all agreed there will be no default.”He then went on to criticize the GOP’s negotiating platform, saying “speaker McCarthy and I have a very different view of who should bear the burden of additional efforts to get our fiscal house in order. I don’t believe the whole burden should fall on the backs of the middle-class and working-class Americans, my House Republican friends disagree.”After weeks of uncertainty and tension, reports indicate that Republican House speaker Kevin McCarthy is nearing a deal with Joe Biden to raise the debt ceiling in exchange for cutting some government spending. But both the GOP-controlled House and Democratic-led Senate have to approve whatever compromise emerges in order to prevent a US government default that could happen as soon 1 June. At the Treasury, they’re not taking any chances – the Wall Street Journal reports that officials have dusted off a plan in case the limit is not lifted in time.Here’s what else happened today:
    Ron DeSantis is trying to make the most of yesterday’s campaign announcement on Twitter, which was marred by the site’s prevalent technical glitches.
    The supreme court’s conservatives weakened environmental protections concerning waterways in a case brought over a couple’s attempt to build a lakeside house in Idaho.
    Donald Trump had classified materials lying around at Mar-a-Lago and sometimes showed them to people, the Washington Post reported.
    Centrist Democrats are annoyed that McCarthy has allowed House lawmakers to head home for the Memorial Day weekend without resolving the debt standoff first.
    Kamala Harris paid tribute to rock’n’roll star Tina Turner, who died yesterday, aged 83.
    Earlier today, most of the supreme court’s conservative justices banded together to weaken environmental protections on America’s waterways in a case stemming from a couple’s attempt to build a lakeside house in Idaho, the Guardian’s Oliver Milman reports:The scope of a landmark law to protect America’s waterways has been shrunk by the US supreme court, which has sided with an Idaho couple who have waged a long-running legal battle to build a house on wetlands near one of the state’s largest lakes.In a ruling passed down on Thursday, the conservative-dominated court decided that the federal government was wrong to use the Clean Water Act, a key 50-year-old piece of legislation to prevent pollution seeping into rivers, streams and lakes, to prevent the couple building over the wetland beside Priest Lake in Idaho.The justice’ decision in effect overhauls the definition of whether wetlands are considered “navigable waters” under the act and are therefore federally protected.Michael Regan, the administrator of the EPA, said he was disappointed by a ruling that “erodes longstanding clean water protections”, adding that the agency would consider its next steps in protecting American waterways.Donald Trump used Twitter to great effect during his 2016 campaign and for most of his presidency.And while he has not tweeted since the platform banned him shortly after the January 6 insurrection in 2021 (even though owner Elon Musk let him back on last year, after he bought the company) Twitter has this afternoon become host to the latest flare-up in the feud between Trump’s surrogates and Ron DeSantis’s allies.The opening volley from Trump’s team:And the retort from top DeSantis aide Christina Pushaw:To which the former president’s people said:And on and on. Follow the tweets if you want more.The Washington Post reports new details of how Donald Trump handled classified documents at his Mar-a-Lago resort in South Florida, including that they were visibly displayed and shown off by the former president to visitors, and that staff moved boxes of papers the day before federal agents searched the property last year.Trump’s possession of government secrets from his time as president that he was not authorized to keep is one of three major issues being investigated by Jack Smith, the justice department’s special counsel. The Post reports that grand jury activity slowed down this month, and Trump’s attorneys have taken steps that indicate a decision over whether to bring charges against the former president could happen soon.Here’s more from the Post’s report:
    Two of Donald Trump’s employees moved boxes of papers the day before FBI agents and a prosecutor visited the former president’s Florida home to retrieve classified documents in response to a subpoena — timing that investigators have come to view as suspicious and an indication of possible obstruction, according to people familiar with the matter.
    Trump and his aides also allegedly carried out a “dress rehearsal” for moving sensitive papers even before his office received the May 2022 subpoena, according to the people familiar with the matter, who spoke on the condition of anonymity to describe a sensitive ongoing investigation.
    Prosecutors in addition have gathered evidence indicating that Trump at times kept classified documents in his office in a place where they were visible and sometimes showed them to others, these people said.
    Taken together, the new details of the classified-documents investigation suggest a greater breadth and specificity to the instances of possible obstruction found by the FBI and Justice Department than has been previously reported. It also broadens the timeline of possible obstruction episodes that investigators are examining — a period stretching from events at Mar-a-Lago before the subpoena to the period after the FBI raid there on Aug. 8.
    That timeline may prove crucial as prosecutors seek to determine Trump’s intent in keeping hundreds of classified documents after he left the White House, a key factor in deciding whether to file charges of obstruction of justice or of mishandling national security secrets. The Washington Post has previously reported that the boxes were moved out of the storage area after Trump’s office received a subpoena. But the precise timing of that activity is a significant element in the investigation, the people familiar with the matter said.
    Grand jury activity in the case has slowed in recent weeks, and Trump’s attorneys have taken steps — including outlining his potential defense to members of Congress and seeking a meeting with the attorney general — that suggest they believe a charging decision is getting closer. The grand jury working on the investigation apparently has not met since May 5, after months of frenetic activity at the federal courthouse in Washington. That is the panel’s longest hiatus since December, shortly after Attorney General Merrick Garland appointed Jack Smith as special counsel to lead the probe and coinciding with the year-end holidays.
    Sam Levine has a fascinating report today on the plight of Robert Zeidman, a cyber forensics expert who took up a challenge from the Trump ally and election conspiracy theorist Mike Lindell…Robert Zeidman was not planning on making the trek to Sioux Falls, South Dakota in August 2021 for a “cyber symposium” hosted by Mike Lindell, the MyPillow chief executive who was pledging to unveil hard data that showed China interfered with the 2020 election.Zeidman, a 63-year-old consultant cyber forensics expert, voted twice for Trump because he did not like the alternative candidates. He thinks there was some fraud in the 2020 election, though not enough to overturn the result. And he believed it was possible Lindell could have discovered evidence voting machines were hacked. He was curious to see Lindell’s evidence, and a bit skeptical, so he thought he would follow along online.But Lindell – one of the most prolific spreaders of election misinformation – was pledging $5m to anyone who could prove the information was not valid data from the 2020 election, and Zeidman’s friends encouraged him to go.Zeidman hopped on a plane from his home in Las Vegas, figuring he would meet a lot of interesting people and witness a historic moment.“I still had my doubts about whether they had the data,” he said in an interview on Monday. “But I thought it would be a question of experts disagreeing or maybe agreeing about what the data meant.“I didn’t think it would be blatantly bogus data, which is what I found.”More:The top US general has issued a stark warning about how a debt default would affect the military, Reuters reports, with chairman of the joint chiefs of staff Mark Milley saying it would undercut its readiness and capabilities, as well as US national security as a whole.“I think it would be very, very significant without a doubt in that absolutely clear, unambiguous implications on national security,” Milley told a press conference.“I think there’s no doubt whatsoever that there would be a very significant negative impact on the readiness, morale and capabilities of the United States military if we defaulted and didn’t reach a debt ceiling [agreement].”Over at the Capitol, Politico reports that consternation is growing among House Democrats, who want Joe Biden to take a more aggressive stance against the GOP’s demands for spending cuts to raise the debt ceiling:Joe Biden said he has had “several productive conversations” with Republican House speaker Kevin McCarthy, and despite outstanding differences over raising the debt ceiling, “there will be no default”.“The only way to move forward is with a bipartisan agreement, and I believe we’ll come to an agreement that allows us to move forward and that protects the hardworking Americans in this country,” the president said at the White House during an event to introduce Charles Q Brown Jr, his nominee for chairman of the joint chiefs of staff.He spoke positively of his negotiations with McCarthy, and said, “our staffs continue to meet, as we speak as a matter of fact, and they’re making progress. I made clear, time and again, that defaulting on our national debt is not an option … congressional leaders understand that and they’ve all agreed there will be no default.”He then went on to criticize the GOP’s negotiating platform, saying “speaker McCarthy and I have a very different view of who should bear the burden of additional efforts to get our fiscal house in order. I don’t believe the whole burden should fall on the backs of the middle-class and working-class Americans, my House Republican friends disagree.”Politico reports from Sioux City, Iowa on how Republican voters in the state that will vote first in the GOP primary next year didn’t think too much about Ron DeSantis’s Twitter Spaces disaster on Wednesday night – if they thought about it at all.The site spoke to attendees at a town hall event hosted by Tim Scott, the South Carolina senator who is competing with DeSantis for the Republican presidential nomination.Asked about DeSantis’s glitch-filled launch, Clinton Vos, 63, said: “I knew that it was going to happen today on Twitter but I’m not a Twitter follower.”Curtis Kull, 30, was asked if he’d heard about DeSantis and Elon Musk’s difficulties.“I did not,” he said.Scott Bowman, 65, said he could yet choose to back DeSantis, though he thought the Twitter fumble meant the Florida governor was “going to get a lot of heat, and I just don’t know if DeSantis can hold up to the questions. It’s a fumble by his campaign”.Gwen Sturrock, “a teacher in her 50s”, said she had heard about the Twitter Spaces event “stalling or whatever”.In a perhaps unconscious nod in the direction of Oscar Wilde – who in The Picture of Dorian Gray wrote “There is only one thing in the world worse than being talked about, and that is not being talked about” – and perhaps giving comfort to any DeSantis aides still seeking plausible spin, Sturrock pointed to one possible upside of the Twitter fiasco.It “might mean that a lot of people were very interested” in the DeSantis campaign, Sturrock said.Here’s some further reading on the DeSantis-Musk mess, from Dan Milmo, our global technology editor:Stewart Rhodes, the founder of the far-right Oath Keepers group, has been sentenced to 18 years in prison after being convicted of seditious conspiracy over his role in the January 6 attack on Congress.Prosecutors had sought a 25-year sentence for the first person convicted of seditious conspiracy in relation to the Capitol attack, which was mounted by supporters of Donald Trump in an attempt to overturn Joe Biden’s victory in the 2020 election.Lawyers for Rhodes said he should be sentenced to time already served since his arrest in January last year.Here’s more from court in Washington today, from the Associated Press:
    At Thursday’s hearing, in a first for a January 6 case, US district judge Amit Mehta agreed with prosecutors to apply enhanced penalties for ‘terrorism’, under the argument that the Oath Keepers sought to influence the government through ‘intimidation or coercion’.
    Judges in previous sentencings had shot down the justice department request for the so-called “terrorism enhancement” – which can lead to a longer prison term – but Mehta said it fitted Rhodes’ case.
    “Mr Rhodes directed his co-conspirators to come to the Capitol and they abided,” the judge said.
    A defense lawyer, Phillip Linder, denied that Rhodes gave any orders for Oath Keepers to enter the Capitol on January 6. Linder told the judge Rhodes could have had many more Oath Keepers come to the Capitol “if he really wanted” to disrupt Congress’ certification of the electoral college vote.
    Some lighter lunchtime reading, courtesy of House Democrats and after a demand for decorum in the chamber from the far-right Georgia Republican and noted decorum-free controversialist Marjorie Taylor Greene.Of the Wednesday demand, which met with gales of laughter, Jared Huffman, from California, said: “Irony died today on the House Floor, but comedy triumphed as the GOP chose MTG as their keeper of ‘decorum’.”Another Californian, Jimmy Gomez, tried a couple of jokes.Greene calling for decorum, Gomez said, is “like Leonardo DiCaprio telling people to date people their own age” or, in reference to another controversial Republican, “like George Santos telling people not to lie”.Here’s the moment in question:And here’s our story:After weeks of uncertainty and tension, reports indicate that Republican House speaker Kevin McCarthy is nearing a deal with Joe Biden on raising the debt ceiling in exchange for cutting some government spending. But nothing is done until it is passed, and both the House and Senate have to approve whatever compromise emerges in order to prevent a US government default that could happen as soon 1 June. At the Treasury, they’re not taking any chances – the Wall Street Journal reports that officials have dusted off a plan in case the limit is not lifted in time.Here’s what else has happened today so far:
    Ron DeSantis is trying to make the most of yesterday’s campaign announcement on Twitter, which was marred by the site’s prevalent technical glitches.
    Centrist Democrats are annoyed that McCarthy has allowed House lawmakers to head home for the Memorial Day weekend without resolving the debt standoff first.
    Kamala Harris paid tribute to rock’n’roll star Tina Turner, who died yesterday, aged 83.
    The Treasury is preparing for the possibility that Congress doesn’t raise the debt ceiling on time, the Wall Street Journal reports.Officials have turned to a plan drawn up in 2011 during a previous debt limit standoff between Democrats and Republicans that resulted in a major credit agency downgrading America’s rating for the first time ever.Twelve years later, the Journal reports that the goal is much the same now as it was then: prevent as much damage to the country’s financial reputation as possible if Washington’s leaders can’t reach an agreement by early June, the approximate deadline when the US will exhaust its cash on hand.Here’s more from their story:
    Under the backup plan created for a debt-limit breach, federal agencies would submit payments to the Treasury no sooner than the day before they are due, the people familiar with the talks said. That would represent a change from the current system, in which agencies may submit payment files well before their due dates. The Treasury processes them on a rolling basis, often ahead of the deadlines. Some payments are already sent to the Treasury one day early, one person said.
    If the Treasury can’t make a full day’s worth of payments, it would likely delay payments until it has enough cash to pay the full day’s worth of bills, the people familiar with the matter said. The plan has been discussed across the government, but the Treasury hasn’t instructed agencies to change how they pay bills.
    The centrist New Democrat Coalition has condemned Kevin McCarthy and the House Republicans for adjourning the chamber ahead of the long Memorial Day weekend without resolving the debt ceiling standoff.“House Republicans are skipping town –– willing to risk the full faith and credit of the United States and plunge the country into an unprecedented crisis,” read a statement from Annie Kuster, the chair of the House caucus.“As Speaker McCarthy remains beholden to the most extreme elements of his party, New Dems are committed to working with responsible Republicans to advance a solution that will pass the House and Senate. As lawmakers, we have a responsibility to rise above partisanship and act in the best interest of our nation. There is no time to waste.”Reports indicate that Joe Biden and the House speaker, Republican Kevin McCarthy, are nearing an agreement on a bill that would raise the debt ceiling through the 2024 election, which would allow the president to avoid another standoff until after voters go to the polls.That proposal is already receiving pushback on the far right, underscoring that McCarthy will likely need Democratic votes to get any bipartisan bill through the House.“Kevin McCarthy is on the verge of striking a terrible deal to give away the debt limit [through] Biden’s term for little in the way of cuts,” said Russ Vought, who served as director of the Office of Management and Budget under Donald Trump.“Nothing to crush the bureaucracy. They are lining up Democrats to pass it. The DC cartel is reassembling. Time for higher defcon. #HoldTheLine”Over in the Senate, Republican Mike Lee of Utah has already pledged to “use every procedural tool at my disposal to impede a debt-ceiling deal that doesn’t contain substantial spending and budgetary reforms.” Such a delay in the upper chamber could increase the risk of default. More