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The US debt ceiling is being discussed by Biden and McCarthy as a deadline approaches

Reports suggest that Speaker of the House Nancy Pelosi and Senate Minority Leader Mitch McConnell are close to finalizing a deal with President Joe Biden to raise the US debt ceiling. The Washington Post has reported that the two sides are discussing lifting the federal borrowing limit as part of a potential deal to provide pandemic aid, and that a deal could be finalized as soon as Tuesday. The Treasury Department has warned that it will run out of funds by the end of the month unless Congress acts to increase the borrowing limit. The potential deal reportedly includes Pelosi’s call for new emergency spending and a Congressional vote on extending the debt ceiling. Administration officials have said they will accept the Democrats’ proposed $1.9 trillion relief package, which includes direct payments to individuals, money for unemployed Americans, and aid for small businesses and state and local governments. It is unclear if the deal will include other priorities for the Republicans, such as changes to unemployment benefits or provisions to increase oversight of the $2 trillion in emergency funds enacted last year.