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Debt ceiling explained: What to know about the showdown in Washington as default looms

The national debt clock is seen in midtown Manhattan, Thursday, May 25, 2023. Both President Joe Biden and House Speaker Kevin McCarthy are speaking hopefully of the likelihood of an agreement to raise the government's debt limit and avert an economically chaotic federal default. (AP Photo/Mary Altaffer)
The national debt clock is seen in midtown Manhattan, Thursday, May 25, 2023. Both President Joe Biden and House Speaker Kevin McCarthy are speaking hopefully of the likelihood of an agreement to raise the government's debt limit and avert an economically chaotic federal default. (AP Photo/Mary Altaffer) The national debt clock is seen in midtown Manhattan, Thursday, May 25, 2023. Both President Joe Biden and House Speaker Kevin McCarthy are speaking hopefully of the likelihood of an agreement to raise the government's debt limit and avert an economically chaotic federal default. (AP Photo/Mary Altaffer)

By MARY CLARE JALONICK, LISA MASCARO and KEVIN FREKING / Associated Press 7 min read

WASHINGTON (AP) — House Republicans still do not have a deal with President Joe Biden to raise the nation’s debt ceiling less than a week away from a potentially catastrophic default.

House Speaker Kevin McCarthy, R-Calif., said Friday that negotiators were working to “finish the job” and seal a deal before the United States runs out of cash to pay its bills. Republicans worked through the night with the White House to find agreement on spending cuts that GOP lawmakers have demanded in exchange for raising the debt limit.

McCarthy said he did not know whether they would finalize the details in the next 24 hours.

“I thought we made progress yesterday,” he said. “I want to make progress again today. And I want to be able to solve this problem.”

Treasury Secretary Janet Yellen has said the country could run out of cash by June 1. A default would potentially devastate the U.S. and global economy depending on how long the standoff goes.