Closest to an agreement to raise the debt limit Republicans and his negotiators White Houseas the window to avert a catastrophic US default narrows and US Treasury Secretary Janet Yellen reiterates that the US government will run out of cash on June 1st.

The two sides have narrowed their differences in recent days, although a final agreement has yet to be reached, according to Bloomberg. In addition, there is still no consensus on the height of the threshold. Under the terms of the deal being drafted, defense spending could increase by 3% over the course of the year to bring it in line with what the US president has requested in the budget. Joe Biden. The agreement will also include measures to upgrade the US power grid to serve renewable energy as part of the country’s climate goals. It will also expedite the issuance of permits for pipelines and other hydrocarbon-related investment projects advocated by the Republican Party.

As of writing, the deal will cut $10 billion of the $80 billion tax increase received by the US president under the Inflation Reduction Act, known as the Biden Package, a subsidy for green investment. Republicans have warned of a wave of inspections, while Democrats have argued that spending increases will be offset by reduced tax evasion.

Critically important over the weekend – the borrowing limit is expected to exceed 1 trillion. dollar

Overall, the deal that appears to be taking shape is estimated to be much smaller than the initial proposal by Republicans, who called for raising the debt limit until next March in exchange for a 10-year spending cut. According to Reuters, the two sides now share only $70 billion, which is why they disagree on the final amount of the borrowing limit, which, however, will be clearly higher than $1 trillion. Sources close to the talks, who spoke to Reuters on condition of anonymity, said the final agreement is expected to determine the total amount the government can allocate to social programs such as housing and education.

News that a deal was coming up sent US Treasury bonds up. The dollar eased slightly against other major currencies, having previously risen to its highest level since March. Speaking to reporters on Capitol Hill, House Republican leader Kevin McCarthy said both sides “know where their differences lie” and added that he planned to work on the issue over the weekend. He stressed that “there is no agreement yet, and we knew that it would not be easy, but we will continue to work until we reach an agreement.”

If an agreement is reached soon, it is likely that it will be put to a vote in the House of Representatives on Tuesday. And then the Senate will have to act quickly and send it to the President of the United States for signature before June 1, which is considered critical, since the US government is expected to run out of cash.