Debt ceiling deal within sight as Biden and Republicans continue to negotiate

House adjourned for holiday weekend, but lawmakers could be recalled to vote on deal if agreement is reached

Joe Biden and Republican lawmakers on Thursday appeared to be nearing a deal to cut spending and raise the debt ceiling, with little time to spare to avoid a potential default that could wreak havoc on the economy and global markets.

The deal under consideration by negotiators would raise the government's $31.4tn debt ceiling for two years while capping spending on most items, a US official told Reuters. It would also increase funding for discretionary spending on military and veterans while essentially holding non-defense discretionary spending at current year levels, the official said.