By Brad Brooks and Maria Caspani

LUBBOCK, Texas (Reuters) -The Texas House on Saturday voted to impeach Attorney General Ken Paxton, a conservative firebrand and ally of former President Donald Trump who has been accused by his fellow Republicans of abuse of office.

In historic proceedings, the 149-member House voted 121-23 to impeach Paxton after hours of debate during which the chamber heard speeches from supporters and opponents of impeachment. Two members were present but not voting while three were absent.

Paxton will now be temporarily removed from office pending a trial in the Senate, where his wife, Angela Paxton, is a senator. The Texas Senate is in recess until 1 p.m. CDT (1800 GMT) on Sunday, according to its website.

Paxton has denied the accusations and denounced the proceedings as “illegal, unethical, and profoundly unjust” in a statement on Twitter after Saturday’s vote.

“I look forward to a quick resolution in the Texas Senate, where I have full confidence the process will be fair and just,” he said.

In a message on his social media channel Truth Social ahead of the vote, Trump, who is seeking re-election in 2024, vowed to “fight” Texas House Republicans if Paxton were to be impeached.

The 20 articles of impeachment presented by a Republican-led House committee accuse Paxton of improperly aiding a wealthy political donor, conducting a sham investigation against whistleblowers in his office whom he fired, and covering up his wrongdoing in a separate federal securities fraud case against him, among other offenses.

Paxton’s impeachment proceedings laid bare the rift among Texas Republicans. Some spoke passionately in support of impeaching the state’s top law enforcement official.

“Attorney General Paxton continuously and blatantly violated laws, rules, policies and procedures,” Representative David Spiller said ahead of the vote.

Others vehemently opposed it. John Smithee, a long-serving conservative member of the chamber, said he was not speaking in Paxton’s defense but criticized the process and said there was insufficient evidence.

“There is not word, not one sentence in the testimony before you that would be admissible in any Texas court of law,” Smithee said. “It is hearsay within hearsay within hearsay.”

Paxton has staked out a position on the far right on divisive cultural issues. He has sued the Biden administration nearly 50 times attempting to halt what has he labeled as “unlawful tyrannical policies” on issues including immigration, gun rights and business regulation.

The five-member Texas House General Investigating Committee voted unanimously on Thursday to recommend that Paxton be impeached and removed from office.

Paxton easily won re-election last year after fending off a Republican primary challenge from George P. Bush, a scion of two former presidents.

The committee has heard testimony from its investigators about several years of alleged abuse of office by Paxton, including that he provided friend and donor Nate Paul, a Texas real estate developer, with FBI files related to the bureau’s investigation into Paul.

The impeachment articles also allege Paxton engaged in bribery when Paul hired a woman with whom Paxton was having an extramarital affair.

(Reporting by Brad Brooks in Lubbock, Texas, Daniel Trotta in Carlsbad, California, and Maria Caspani in New York; Editing by Tom Hogue, David Gregorio and Daniel Wallis)

By Katharine Jackson, Steve Holland and Moira Warburton

WASHINGTON (Reuters) – President Joe Biden and top congressional Republican Kevin McCarthy were holding a phone conversation on Saturday evening about the ongoing debt ceiling negotiations, a person familiar with their plans said.

The two were expected to speak starting at 6 p.m. E.D.T., the person said.

McCarthy said earlier on Saturday that he was making “progress” in negotiations on raising the federal government’s debt ceiling, as the nation faced risk of default in little more than a week.

However just ahead of the expected call between Biden and McCarthy, Republican deal negotiator Patrick McHenry told reporters “major disagreement” remained between his party and Biden’s Democrats.

“Republicans want to cut spending. That’s what we’ve offered with our approach to raising the debt ceiling, with work requirements for able bodied folks to get back in the workforce. Those things are big issues, and there’s no way to sort of gloss that over,” he said.

“Most of the issues that remain, they (the president and McCarthy) need to resolve,” McHenry said.

Time is tight. The Treasury Department on Friday said the government would run short of funds to pay all its bills on June 5 without congressional action, a slightly later but firmer deadline than its prior forecast of default as early as June 1.

And any deal in principle between Biden and House of Representatives Speaker McCarthy will be the start of what could easily be a week-long process of shepherding legislation through the narrowly and bitterly divided Congress.

Hardline Republicans have threatened to block any bill that does not meet their expectations, including sharp spending cuts.

Progressive Democrats have also threatened to withhold support for some of the compromises raised, particularly around imposing new work requirements on federal anti-poverty programs.

“It’s very close and I’m optimistic,” Biden told reporters on Friday.

Republicans control the House by a 222-213 margin, while Democrats hold a 51-49 Senate majority, leaving a narrow path to pass any agreement by the Democratic president and Republican speaker into law.

Republicans have sought to curb government spending sharply over the coming 10 years to slow the growth of the U.S. debt, which is now equal to the annual output of the economy.

But the tentative agreement would likely fall well short of their goal.

The two sides have tentatively reached an agreement that would raise the debt ceiling by enough to cover the country’s borrowing needs through the November 2024 presidential election.

It would boost spending on the military and veterans’ care, and cap spending for many discretionary domestic programs, according to sources familiar with the talks.

McCarthy said Republicans were also still pushing for reforms to energy permitting, including making it easier to drill for gas and oil.

Even before a deal was reached, some members of McCarthy’s restive caucus were raising objections. Republican Representative Dan Bishop reacted with anger to the idea of extending the debt ceiling through the next presidential election.

“If Speaker’s negotiators bring back in substance a clean debt limit increase … one so large that it even protects Biden from the issue in the presidential … it’s war,” Bishop, a member of the hardline House Freedom Caucus, wrote on Twitter on Saturday.

STICKING POINTS

Republicans have rejected Biden’s proposed tax increases, and neither side has shown a willingness to take on the fast-growing health and retirement programs that will drive up debt sharply in the coming years.

Biden’s signature infrastructure and green-energy laws would remain intact, while the Internal Revenue Service would see its recent budget increase scaled back slightly.

But safety-net programs remain a sticking point. Republicans want to stiffen work requirements for the Medicaid health plan for the poor and the SNAP food assistance program. Democrats say that would create more barriers for people already struggling to make ends meet.

Both programs expanded dramatically during the COVID-19 pandemic but have been scaled back in recent months.

A failure by Congress to raise its self-imposed debt ceiling before June 5 could trigger a default that would shake financial markets and send the United States into a deep recession.

Several credit-rating agencies have said they have put the United States 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 U.S. debt, hammering markets and sending the government’s borrowing costs higher.

(Reporting by Moira Warburton, Steve Holland and Katharine Jackson; Writing by Andy Sullivan; Editing by Scott Malone, Frances Kerry, Daniel Wallis and Heather Timmons)

By Brad Brooks

LUBBOCK, Texas (Reuters) – The Texas House on Saturday voted to impeach Attorney General Ken Paxton, a conservative firebrand and ally of former President Donald Trump who has been accused by his fellow Republicans of abuse of office.

The 149-member House voted 121-23 to impeach Paxton after several hours of debate during which the chamber heard speeches from both proponents and opponents of impeachment.

Paxton will now be temporarily removed from office pending a trial in the Senate, where his wife, Angela Paxton, is a senator. A two-thirds Senate vote is needed to permanently expel him.

The 20 articles of impeachment accuse Paxton of improperly aiding a wealthy political donor, conducting a sham investigation against whisteblowers in his office whom he fired, and covering up his wrongdoing in a separate federal securities fraud case against him, among other offenses.

Paxton has denied the charges and last week lashed out against his critics, saying that removing him from office would be a gift for President Joe Biden and his Democratic agenda.

Paxton’s impeachment proceedings laid bare the rift among Texas Republicans. Some spoke passionately in support of impeaching the state’s top law enforcement official.

“Attorney General Paxton continuously and blatantly violated laws, rules, policies and procedures,” Representative David Spiller said ahead of the vote on Saturday.

Others vehemently opposed it. John Smithee, a long-serving conservative member of the chamber, said he was not speaking in Paxton’s defense but criticized the process and said there was insufficient evidence.

Former President Donald Trump, who is running for re-election in 2024, on Saturday threw his support behind the embattled Texas attorney general with a message on his social media channel Truth Social that called to “Free Ken Paxton.”

Paxton has staked out a position on the far right on divisive cultural issues. He has sued the Biden administration nearly 50 times attempting to halt what has he labeled as “unlawful tyrannical policies” on issues including immigration, gun rights and business regulation.

The five-member Texas House General Investigating Committee voted unanimously on Thursday to recommend that Paxton be impeached and removed from office.

“They are showcasing their absolute contempt for the electoral process,” said Paxton, who easily won reelection last year after fending off a Republican primary challenge from George P. Bush, a scion of two former presidents.

The committee has heard testimony from its investigators about several years of alleged abuse of office by Paxton, including that he provided friend and donor Nate Paul, a Texas real estate developer, with FBI files related to the bureau’s investigation into Paul.

The impeachment articles also allege Paxton engaged in bribery when Paul hired a woman with whom Paxton was having an extramarital affair.

(Reporting by Brad Brooks in Lubbock, Texas, Daniel Trotta in Carlsbad, California, and Maria Caspani in New York; Editing by Tom Hogue and David Gregorio)

By Brad Brooks

LUBBOCK, Texas (Reuters) – The Texas House on Saturday voted to impeach Attorney General Ken Paxton, a conservative firebrand and ally of former President Donald Trump who has been accused by his fellow Republicans of abuse of office.

The 149-member House voted 121-23 to impeach Paxton after several hours of debate during which the chamber heard speeches from both proponents and opponents of impeachment.

Paxton will now be temporarily removed from office pending a trial in the Senate, where his wife, Angela Paxton, is a senator. A two-thirds Senate vote is needed to permanently expel him.

The 20 articles of impeachment accuse Paxton of improperly aiding a wealthy political donor, conducting a sham investigation against whisteblowers in his office whom he fired, and covering up his wrongdoing in a separate federal securities fraud case against him, among other offenses.

Paxton has denied the charges and last week lashed out against his critics, saying that removing him from office would be a gift for President Joe Biden and his Democratic agenda.

Paxton’s impeachment proceedings laid bare the rift among Texas Republicans. Some spoke passionately in support of impeaching the state’s top law enforcement official.

“Attorney General Paxton continuously and blatantly violated laws, rules, policies and procedures,” Representative David Spiller said ahead of the vote on Saturday.

Others vehemently opposed it. John Smithee, a long-serving conservative member of the chamber, said he was not speaking in Paxton’s defense but criticized the process and said there was insufficient evidence.

Former President Donald Trump, who is running for re-election in 2024, on Saturday threw his support behind the embattled Texas attorney general with a message on his social media channel Truth Social that called to “Free Ken Paxton.”

Paxton has staked out a position on the far right on divisive cultural issues. He has sued the Biden administration nearly 50 times attempting to halt what has he labeled as “unlawful tyrannical policies” on issues including immigration, gun rights and business regulation.

The five-member Texas House General Investigating Committee voted unanimously on Thursday to recommend that Paxton be impeached and removed from office.

“They are showcasing their absolute contempt for the electoral process,” said Paxton, who easily won reelection last year after fending off a Republican primary challenge from George P. Bush, a scion of two former presidents.

The committee has heard testimony from its investigators about several years of alleged abuse of office by Paxton, including that he provided friend and donor Nate Paul, a Texas real estate developer, with FBI files related to the bureau’s investigation into Paul.

The impeachment articles also allege Paxton engaged in bribery when Paul hired a woman with whom Paxton was having an extramarital affair.

(Reporting by Brad Brooks in Lubbock, Texas, Daniel Trotta in Carlsbad, California, and Maria Caspani in New York; Editing by Tom Hogue and David Gregorio)

By Moira Warburton, Katharine Jackson and Steve Holland

WASHINGTON (Reuters) -President Joe Biden and top congressional Republican Kevin McCarthy will have a phone conversation “soon” about the debt ceiling deal, a person familiar with their negotiations said.

McCarthy said earlier on Saturday that he was making “progress” in negotiations on raising the federal government’s debt ceiling, as the nation faced risk of default in little more than a week.

Time is tight. The Treasury Department on Friday said the government would run short of funds to pay all its bills on June 5 without congressional action, a slightly later but firmer deadline than its prior forecast of default as early as June 1.

And any deal in principle between Biden and House of Representatives Speaker McCarthy will be the start of what could easily be a week-long process of shepherding legislation through the narrowly and bitterly divided Congress.

“We do not have a deal,” McCarthy told reporters. “We are not there yet. We did make progress, we worked well into early this morning. And we’re back at it now.”

Hardline Republicans have threatened to block any bill that does not meet their expectations, including sharp spending cuts.

Progressive Democrats have also threatened to withhold support for some of the compromises raised, particularly around imposing new work requirements on federal anti-poverty programs.

“It’s very close and I’m optimistic,” Biden told reporters on Friday.

Republicans control the House by a 222-213 margin, while Democrats hold a 51-49 Senate majority, leaving a narrow path to pass any agreement by the Democratic president and Republican speaker into law.

Republicans have sought to curb government spending sharply over the coming 10 years to slow the growth of the U.S. debt, which is now equal to the annual output of the economy.

But the tentative agreement would likely fall well short of their goal.

The two sides have tentatively reached an agreement that would raise the debt ceiling by enough to cover the country’s borrowing needs through the November 2024 presidential election.

It would boost spending on the military and veterans’ care, and cap spending for many discretionary domestic programs, according to sources familiar with the talks.

McCarthy said Republicans were also still pushing for reforms to energy permitting, including making it easier to drill for gas and oil.

Even before a deal was reached, some members of McCarthy’s restive caucus were raising objections. Republican Representative Dan Bishop reacted with anger to the idea of extending the debt ceiling through the next presidential election.

“If Speaker’s negotiators bring back in substance a clean debt limit increase … one so large that it even protects Biden from the issue in the presidential … it’s war,” Bishop, a member of the hardline House Freedom Caucus, wrote on Twitter on Saturday.

STICKING POINTS

Republicans have rejected Biden’s proposed tax increases, and neither side has shown a willingness to take on the fast-growing health and retirement programs that will drive up debt sharply in the coming years.

Biden’s signature infrastructure and green-energy laws would remain intact, while the Internal Revenue Service would see its recent budget increase scaled back slightly.

But safety-net programs remain a sticking point. Republicans want to stiffen work requirements for the Medicaid health plan for the poor and the SNAP food assistance program. Democrats say that would create more barriers for people already struggling to make ends meet.

Both programs expanded dramatically during the COVID-19 pandemic but have been scaled back in recent months.

A failure by Congress to raise its self-imposed debt ceiling before June 5 could trigger a default that would shake financial markets and send the United States into a deep recession.

Several credit-rating agencies have said they have put the United States 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 U.S. debt, hammering markets and sending the government’s borrowing costs higher.

(Reporting by Moira Warburton, Steve Holland and Katharine Jackson; Writing by Andy Sullivan; Editing by Scott Malone, Frances Kerry, Daniel Wallis and Heather Timmons)

WASHINGTON (Reuters) – Top congressional Republican Kevin McCarthy said on Saturday he was making “progress” in negotiations with Democratic President Joe Biden on raising the federal government’s debt ceiling, as the nation faced risk of default in little more than a week.

Time is tight. The Treasury Department on Friday said the government would run short of funds to pay all its bills on June 5 without congressional action, a slightly later but firmer deadline than its prior forecast of default as early as June 1.

And any deal in principle between Biden and House of Representatives Speaker McCarthy will be the start of what could easily be a week-long process of shepherding legislation through the narrowly and bitterly divided Congress.

“We do not have a deal,” McCarthy told reporters. “We are not there yet. We did make progress, we worked well into early this morning. And we’re back at it now.”

Hardline Republicans have threatened to block any bill that does not meet their expectations, including sharp spending cuts.

Progressive Democrats have also threatened to withhold support for some of the compromises raised, particularly around imposing new work requirements on federal anti-poverty programs.

“It’s very close and I’m optimistic,” Biden told reporters on Friday.

Republicans control the House by a 222-213 margin, while Democrats hold a 51-49 Senate majority, leaving a narrow path to pass any agreement by the Democratic president and Republican speaker into law.

Republicans have sought to curb government spending sharply over the coming 10 years to slow the growth of the U.S. debt, which is now equal to the annual output of the economy.

But the tentative agreement would likely fall well short of their goal.

The two sides have tentatively reached an agreement that would raise the debt ceiling by enough to cover the country’s borrowing needs through the November 2024 presidential election.

It would boost spending on the military and veterans’ care, and cap spending for many discretionary domestic programs, according to sources familiar with the talks.

McCarthy said Republicans were also still pushing for reforms to energy permitting, including making it easier to drill for gas and oil.

Even before a deal was reached, some members of McCarthy’s restive caucus were raising objections. Republican Representative Dan Bishop reacted with anger to the idea of extending the debt ceiling through the next presidential election.

“If Speaker’s negotiators bring back in substance a clean debt limit increase … one so large that it even protects Biden from the issue in the presidential … it’s war,” Bishop, a member of the hardline House Freedom Caucus, wrote on Twitter on Saturday.

STICKING POINTS

Republicans have rejected Biden’s proposed tax increases, and neither side has shown a willingness to take on the fast-growing health and retirement programs that will drive up debt sharply in the coming years.

Biden’s signature infrastructure and green-energy laws would remain intact, while the Internal Revenue Service would see its recent budget increase scaled back slightly.

But safety-net programs remain a sticking point. Republicans want to stiffen work requirements for the Medicaid health plan for the poor and the SNAP food assistance program. Democrats say that would create more barriers for people already struggling to make ends meet.

Both programs expanded dramatically during the COVID-19 pandemic but have been scaled back in recent months.

A failure by Congress to raise its self-imposed debt ceiling before June 5 could trigger a default that would shake financial markets and send the United States into a deep recession.

Several credit-rating agencies have said they have put the United States 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 U.S. debt, hammering markets and sending the government’s borrowing costs higher.

(Reporting by Moira Warburton and Katharine Jackson; Writing by Andy Sullivan; Editing by Scott Malone, Frances Kerry and Daniel Wallis)

By Moira Warburton and Katharine Jackson

WASHINGTON (Reuters) -Top congressional Republican Kevin McCarthy said on Saturday he was making “progress” in negotiations with Democratic President Joe Biden on raising the federal government’s debt ceiling, as the nation faced risk of default in little more than a week.

Time is tight. The Treasury Department on Friday said the government would run short of funds to pay all its bills on June 5 without congressional action, a slightly later but firmer deadline than its prior forecast of default as early as June 1.

And any deal in principle between Biden and House of Representatives Speaker McCarthy will be the start of what could easily be a week-long process of shepherding legislation through the narrowly and bitterly divided Congress.

“We do not have a deal,” McCarthy told reporters. “We are not there yet. We did make progress, we worked well into early this morning. And we’re back at it now.”

Hardline Republicans have threatened to block any bill that does not meet their expectations, including sharp spending cuts.

Progressive Democrats have also threatened to withhold support for some of the compromises raised, particularly around imposing new work requirements on federal anti-poverty programs.

“It’s very close and I’m optimistic,” Biden told reporters on Friday.

Republicans control the House by a 222-213 margin, while Democrats hold a 51-49 Senate majority, leaving a narrow path to pass any agreement by the Democratic president and Republican speaker into law.

Republicans have sought to curb government spending sharply over the coming 10 years to slow the growth of the U.S. debt, which is now equal to the annual output of the economy.

But the tentative agreement would likely fall well short of their goal.

The two sides have tentatively reached an agreement that would raise the debt ceiling by enough to cover the country’s borrowing needs through the November 2024 presidential election.

It would boost spending on the military and veterans’ care, and cap spending for many discretionary domestic programs, according to sources familiar with the talks.

McCarthy said Republicans were also still pushing for reforms to energy permitting, including making it easier to drill for gas and oil.

Even before a deal was reached, some members of McCarthy’s restive caucus were raising objections. Republican Representative Dan Bishop reacted with anger to the idea of extending the debt ceiling through the next presidential election.

“If Speaker’s negotiators bring back in substance a clean debt limit increase … one so large that it even protects Biden from the issue in the presidential … it’s war,” Bishop, a member of the hardline House Freedom Caucus, wrote on Twitter on Saturday.

STICKING POINTS

Republicans have rejected Biden’s proposed tax increases, and neither side has shown a willingness to take on the fast-growing health and retirement programs that will drive up debt sharply in the coming years.

Biden’s signature infrastructure and green-energy laws would remain intact, while the Internal Revenue Service would see its recent budget increase scaled back slightly.

But safety-net programs remain a sticking point. Republicans want to stiffen work requirements for the Medicaid health plan for the poor and the SNAP food assistance program. Democrats say that would create more barriers for people already struggling to make ends meet.

Both programs expanded dramatically during the COVID-19 pandemic but have been scaled back in recent months.

A failure by Congress to raise its self-imposed debt ceiling before June 5 could trigger a default that would shake financial markets and send the United States into a deep recession.

Several credit-rating agencies have said they have put the United States 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 U.S. debt, hammering markets and sending the government’s borrowing costs higher.

(Reporting by Moira Warburton and Katharine Jackson; Writing by Andy Sullivan; Editing by Scott Malone, Frances Kerry and Daniel Wallis)

By Moira Warburton and Katharine Jackson

WASHINGTON (Reuters) -Top congressional Republican Kevin McCarthy said on Saturday he was making “progress” in negotiations with Democratic President Joe Biden on raising the federal government’s debt ceiling, as the nation faced risk of default in little more than a week.

Time is tight. The Treasury Department on Friday said the government would run short of funds to pay all its bills on June 5 without congressional action, a slightly later but firmer deadline than its prior forecast of default as early as June 1.

And any deal in principle between Biden and House of Representatives Speaker McCarthy will be the start of what could easily be a week-long process of shepherding legislation through the narrowly and bitterly divided Congress.

“We do not have a deal,” McCarthy told reporters. “We are not there yet. We did make progress, we worked well into early this morning. And we’re back at it now.”

Hardline Republicans have threatened to block any bill that does not meet their expectations, including sharp spending cuts.

Progressive Democrats have also threatened to withhold support for some of the compromises raised, particularly around imposing new work requirements on federal anti-poverty programs.

“It’s very close and I’m optimistic,” Biden told reporters on Friday.

Republicans control the House by a 222-213 margin, while Democrats hold a 51-49 Senate majority, leaving a narrow path to pass any agreement by the Democratic president and Republican speaker into law.

Republicans have sought to curb government spending sharply over the coming 10 years to slow the growth of the U.S. debt, which is now equal to the annual output of the economy.

But the tentative agreement would likely fall well short of their goal.

The two sides have tentatively reached an agreement that would raise the debt ceiling by enough to cover the country’s borrowing needs through the November 2024 presidential election.

It would boost spending on the military and veterans’ care, and cap spending for many discretionary domestic programs, according to sources familiar with the talks.

McCarthy said Republicans were also still pushing for reforms to energy permitting, including making it easier to drill for gas and oil.

STICKING POINTS

Republicans have rejected Biden’s proposed tax increases, and neither side has shown a willingness to take on the fast-growing health and retirement programs that will drive up debt sharply in the coming years.

Biden’s signature infrastructure and green-energy laws would remain intact, while the Internal Revenue Service would see its recent budget increase scaled back slightly.

But safety-net programs remain a sticking point. Republicans want to stiffen work requirements for the Medicaid health plan for the poor and the SNAP food assistance program. Democrats say that would create more barriers for people already struggling to make ends meet.

Both programs expanded dramatically during the COVID-19 pandemic but have been scaled back in recent months.

A failure by Congress to raise its self-imposed debt ceiling before June 5 could trigger a default that would shake financial markets and send the United States into a deep recession.

Several credit-rating agencies have said they have put the United States 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 U.S. debt, hammering markets and sending the government’s borrowing costs higher.

(Reporting by Moira Warburton and Katharine Jackson; Writing by Andy Sullivan; Editing by Scott Malone, Frances Kerry and Daniel Wallis)

By Moira Warburton and Katharine Jackson

WASHINGTON (Reuters) -A lead Republican negotiator in the talks with President Joe Biden’s administration to raise the U.S. federal government’s $31.4 trillion debt ceiling and avoid a disastrous default told reporters that thorny issues remained on Saturday.

Time is tight. The Treasury Department on Friday said the government would run short of funds to pay all its bills on June 5 without congressional action, a slightly later but firmer deadline than its prior forecast of default as early as June 1.

And any deal in principle between Democratic President Joe Biden and top congressional Republican Kevin McCarthy will be the start of what could easily be a week-long process of shepherding legislation through the narrowly and bitterly divided Congress.

“These are tough things. This is not how I anticipated the final hours and days would go. But we’re getting to a very narrow set of issues that has to be dealt with,” said Representative Patrick McHenry, adding that a major focus for Republicans remained spending cuts. “You can’t get there if you don’t deal with the thorny issues in a reasonable way.”

Hardline Republicans in the House of Representatives have threatened to block any bill that does not meet their expectations, including sharp spending cuts.

Progressive Democrats have also threatened to withhold support for some of the compromises raised, particularly around imposing new work requirements on federal anti-poverty programs.

“It’s very close and I’m optimistic,” Biden told reporters on Friday.

Republicans control the House by a 222-213 margin, while Democrats hold a 51-49 Senate majority, leaving a narrow path to pass any agreement by the Democratic president and Republican speaker into law.

Republicans have sought to sharply curb government spending over the coming 10 years in order to slow the growth of the U.S. debt, which is now equal to the annual output of the economy.

But the tentative agreement would likely fall well short of their goal.

The two sides have tentatively reached an agreement that would raise the debt ceiling by enough to cover the country’s borrowing needs through the November 2024 presidential election.

It would boost spending on the military and veterans’ care, and cap it for many discretionary domestic programs, according to sources familiar with the talks.

STICKING POINTS

Republicans have rejected Biden’s proposed tax increases, and neither side has shown a willingness to take on the fast-growing health and retirement programs that will drive up debt sharply in the coming years.

Biden’s signature infrastructure and green-energy laws would remain intact, while the Internal Revenue Service would see its recent budget increase scaled back slightly.

But safety-net programs remain a sticking point. Republicans want to stiffen work requirements for the Medicaid health plan for the poor and the SNAP food assistance program. Democrats say that would create more barriers for people who are already struggling to make ends meet.

Both programs expanded dramatically during the COVID-19 pandemic but have been scaled back in recent months.

A failure by Congress to raise its self-imposed debt ceiling before June 5 could trigger a default that would shake financial markets and send the United States into a deep recession.

Several credit-rating agencies have said they have put the United States 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 U.S. debt, hammering markets and sending the government’s borrowing costs higher.

(Reporting by Moira Warburton and Katharine JacksonWriting by Andy SullivanEditing by Scott Malone and Frances Kerry)

By Moira Warburton and Katharine Jackson

WASHINGTON (Reuters) -A lead Republican negotiator in the talks with President Joe Biden’s administration to raise the U.S. federal government’s $31.4 trillion debt ceiling and avoid a disastrous default told reporters that thorny issues remained on Saturday.

Time is tight. The Treasury Department on Friday said the government would run short of funds to pay all its bills on June 5 without congressional action, a slightly later but firmer deadline than its prior forecast of default as early as June 1.

And any deal in principle between Democratic President Joe Biden and top congressional Republican Kevin McCarthy will be the start of what could easily be a week-long process of shepherding legislation through the narrowly and bitterly divided Congress.

“These are tough things. This is not how I anticipated the final hours and days would go. But we’re getting to a very narrow set of issues that has to be dealt with,” said Representative Patrick McHenry, adding that a major focus for Republicans remained spending cuts. “You can’t get there if you don’t deal with the thorny issues in a reasonable way.”

Hardline Republicans in the House of Representatives have threatened to block any bill that does not meet their expectations, including sharp spending cuts.

Progressive Democrats have also threatened to withhold support for some of the compromises raised, particularly around imposing new work requirements on federal anti-poverty programs.

“It’s very close and I’m optimistic,” Biden told reporters on Friday.

Republicans control the House by a 222-213 margin, while Democrats hold a 51-49 Senate majority, leaving a narrow path to pass any agreement by the Democratic president and Republican speaker into law.

Republicans have sought to sharply curb government spending over the coming 10 years in order to slow the growth of the U.S. debt, which is now equal to the annual output of the economy.

But the tentative agreement would likely fall well short of their goal.

The two sides have tentatively reached an agreement that would raise the debt ceiling by enough to cover the country’s borrowing needs through the November 2024 presidential election.

It would boost spending on the military and veterans’ care, and cap it for many discretionary domestic programs, according to sources familiar with the talks.

STICKING POINTS

Republicans have rejected Biden’s proposed tax increases, and neither side has shown a willingness to take on the fast-growing health and retirement programs that will drive up debt sharply in the coming years.

Biden’s signature infrastructure and green-energy laws would remain intact, while the Internal Revenue Service would see its recent budget increase scaled back slightly.

But safety-net programs remain a sticking point. Republicans want to stiffen work requirements for the Medicaid health plan for the poor and the SNAP food assistance program. Democrats say that would create more barriers for people who are already struggling to make ends meet.

Both programs expanded dramatically during the COVID-19 pandemic but have been scaled back in recent months.

A failure by Congress to raise its self-imposed debt ceiling before June 5 could trigger a default that would shake financial markets and send the United States into a deep recession.

Several credit-rating agencies have said they have put the United States 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 U.S. debt, hammering markets and sending the government’s borrowing costs higher.

(Reporting by Moira Warburton and Katharine JacksonWriting by Andy SullivanEditing by Scott Malone and Frances Kerry)