Debt ceiling negotiators close to a deal, with IRS funding in the spotlight

WASHINGTON — The White House and congressional negotiators were closing in on a compromise agreement on Friday to raise the debt ceiling for two years, with just six days to go before the nation faces a grave threat of debt default.

Markets rose Friday morning, buoyed in part by optimism that a deal would be reached in time to meet the Treasury Department’s June 1 deadline.

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This one chart shows the stock market risk of going down to the wire on a debt ceiling deal
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Under the deal currently on the table, House Republicans would achieve at least two of their highest priorities in exchange for voting to raise the debt ceiling. Firstly, to roll back baseline federal spending in 2024 on most discretionary programs. And second, to rescind some of the $80 billion allocated for the Internal Revenue Service as part of 2022’s Inflation Reduction Act, two sources…

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