In debt ceiling standoff, COVID era of big spending gives way to new focus on deficit

By LISA MASCARO
AP Congressional Correspondent

WASHINGTON (AP) — One outcome is clear as Washington reaches for a budget deal in the debt ceiling standoff. The ambitious COVID-19 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 soon, their staffs are working on a budget deal. The White House has threatened to veto Republican House Speaker Kevin McCarthy’s debt ceiling bill, which it says includes “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.