McCarthy proposes budget cuts ahead of debt ceiling vote.

US House Speaker Kevin McCarthy has proposed spending cuts in exchange for voting to raise the federal government's $31.4tn debt ceiling, including cutting spending to last year's levels, capping growth at 1% per year, and reversing some of President Joe Biden's policy goals. Democrats have rejected these ideas, and the Treasury Department has warned that the federal government could hit the "X-date," when it is no longer able to pay all its bills, as early as June 5. McCarthy leads a fractious caucus that holds a narrow 222-213 House majority, including a sizeable contingent of hard line members who want sharp spending cuts and dismiss the risks of failure to act on the debt ceiling.