Debt ceiling standoff: McCarthy rejects Democrats in major break with tradition

House Speaker Kevin McCarthy (R-CA) is standing firm in his commitment against raising the debt ceiling without budget cuts as the Treasury Department prepares to start extraordinary measures this week to keep the country from defaulting on its debt.

Pairing a raise of the federal borrowing limit with a decrease in spending is one of the deals McCarthy cut with the conservative wing of his conference in exchange for its backing in his speakership bid. The Democrats are demanding a clean increase in order to keep paying expenses, and the two sides have until about June to work out a deal before the government starts to default on payments.