White House 'dug in' on demands in debt limit talks, McCarthy told House GOP: source

House Speaker Kevin McCarthy told his conference that the White House was still "dug in" on its stance in debt limit negotiations despite a Monday night meeting that both sides hailed as "productive," according to a source familiar with this morning’s remarks.

"Members were told to remain flexible for next week" in case they have to return to vote for a new debt limit bill, the source said. "McCarthy said the White House is dug in on raising taxes and [increasing] spending but by a smaller amount than they would like."

It lines up with reporting that White House negotiators have countered Republicans’ demand to cut spending to 2022 levels and cap it at 1% growth for the next decade with an offer to freeze current spending levels into the next fiscal year, with caps for one or two following years.