Spending Cuts, Debt Ceiling Complicate Budget Talks

Senate leaders are advancing a budget resolution to initiate the reconciliation process for tax, immigration, and defense legislation. A significant challenge is whether to include an increase to the debt ceiling, as failing to do so could spark economic turmoil. Conservative lawmakers remain divided on spending cuts, complicating negotiations. With the government projected to reach its borrowing limit between May and September, Republicans are under pressure to act. Some support raising the limit alongside spending cuts, while others are opposed. Narrow majorities in both chambers create uncertainty regarding the bill’s passage, increasing the risk of last-minute debt-limit negotiations.