Debt ceiling talks push Washington toward new era of deficit cuts

One outcome is clear as Washington reaches for a budget deal to end the debt ceiling standoff: The ambitious COVID era of government spending is giving way to a new focus on stemming deficits. As President Joe Biden and congressional leaders prepare to meet again next week, staff are working on a budget deal. The White House has threatened to veto Republican House Speaker Kevin McCarthy’s debt ceiling bill with its “devastating cuts” to federal programs. But the administration has signaled a willingness to consider other budget caps. It's a turnaround from just a few years ago, when Congress passed trillions in emergency aid to halt the pandemic and rebuild the U.S. economy.