Major political battle to begin as US is expected to hit borrowing limit today – live

LIVE – Updated at 14:03 Biden and Democrats want to raise debt limit without conditions, but Republicans controlling House say they’ll only agree if

spending is cut.   14:03 For Kevin McCarthy and the Republican majority he leads in the House, the debt limit is all about leverage. In exchange for

their votes in the November midterms, the party made big promises to their supporters, but the Democrats’ continued control of the Senate and Joe Biden’s presence in the White

House means much of the legislation House Republicans pass will go nowhere. Increasing the government’s borrowing limit is one area where the two parties must work together, and

while they have been vague on the details, McCarthy’s team says they will only agree to an increase if the Democrats reduce government spending. Using the debt ceiling as

leverage has been done repeatedly in the past, but the circumstances today harken back to the standoff of 2011. Then, Barack Obama was in the White House and had a Democratic

majority in the Senate, while the GOP had just retaken the House. As is the case today, the Republicans demanded spending cuts, and negotiations dragged on for so long that

S&P Global Ratings downgraded American’s debt from its highest grade. The deal that resolved the standoff ultimately did lead to some spending cuts – but the

country’s debt has only increased in the years since.