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House Republican leader: Congress should raise debt ceiling before August recess

House Republican leader: Congress should raise debt ceiling before August recess
© Aaron Schwartz

House Minority Leader Kevin McCarthyKevin McCarthyMcCarthy says he told Rep. Marjorie Taylor Greene he disagreed with her impeachment articles against Biden Cheney tests Trump grip on GOP post-presidency McCarthy supports Cheney remaining in leadership amid calls for her to step down MORE (R-Calif.) said Tuesday that Congress should increase the debt limit before lawmakers leave town for the August recess.

“There is a real concern, and I don't think this is a question on any side of the aisle, that when the debt ceiling can hit, that it could hit early September or maybe sooner," he told reporters at a news conference on Capitol Hill. "We should not leave for August without dealing with that.”

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McCarthy said he believes progress has been made in recent days with negotiations between congressional Democrats, Republicans and the White House.

“I do think that we can get this done. And I would say to the Speaker, if we are as close as I believe we are, and we need a day or two longer, we should stay there and make sure we get it done,” he added.

Treasury Secretary Steven MnuchinSteven MnuchinPence delivers coronavirus task force report to Biden Treasury imposes additional sanctions on Cuba over allegations of 'serious human rights abuse' Treasury Department sanctions inner circle of Russian agent Derkach for election interference MORE — who has also expressed optimism about the chances of striking a bipartisan deal — warned the government could run out of money in early September in a letter sent to congressional leadership on Friday.

Speaker Nancy PelosiNancy PelosiDivide and conquer or unite and prosper Trump impeachment article being sent to Senate Monday Roe is not enough: Why Black women want an end to the Hyde Amendment MORE (D-Calif.) and Mnuchin have been holding talks to discuss raising statutory budget caps alongside an increase in the nation's borrowing limit to avoid a default.

Top Democrats are looking to link the debt ceiling with a budget agreement in hopes it will provide them with more leverage during spending negotiations.

Many Republican lawmakers have said they want to avoid a stand-alone vote on raising the debt ceiling.

Failure to increase the debt limit could roil global markets and threaten recent economic gains.