WASHINGTON, May 25 (Reuters) – U.S. President Joe Biden and top Republican congressman Kevin McCarthy are nearing a deal on the U.S. debt ceiling, with just $70 billion in discretionary spending left by the parties, a person familiar with the talks said.
What will emerge will not be a bill hundreds of pages long, which could take lawmakers days to write, read and vote on, but a slim deal with a few key numbers, this source and another person briefed on the negotiations said. .
Negotiators will hammer out high-level numbers for discretionary spending, including numbers for military spending, but lawmakers are expected to hammer out the finer details of categories like housing and education in the coming months through the normal appropriations process, a second source said. said.
By 2022, US discretionary spending will reach $1.7 trillion, accounting for 27% of total spending of $6.27 trillion, according to federal statistics. Half of that was for conservation, and some lawmakers have said a portion should not be cut.
Sources said the final decision would safeguard future budget talks and not spell out detailed spending.
The White House declined to comment.
On Wall Street, the S&P 500 (.SPX) rose less than 1 percent, U.S. Treasuries fell in price and the U.S. dollar (.DXY) scaled to its highest levels since March as markets digested optimistic news about the debt ceiling. From Washington.
Reporting by Jared Renshaw and Nandita Bose; Additional reporting by Trevor Hunnicutt; Editing by Heather Timmons and Alistair Bell
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