EXCLUSIVE: DORAL, Fla. — Leaders within the House GOP's largest caucus are drawing a red line in congressional Republicans' budget talks.

The Republican Study Committee's (RSC) steering group is calling for any budget reconciliation plan to ultimately lead to reductions in the U.S. deficit, which occurs when the federal government's spending outpaces its revenues in a given fiscal year.

"Reconciliation legislation must reduce the federal budget deficit. Our national security depends on our ability to bring about meaningful fiscal reform," the official position, first obtained by Fox News Digital, said. 

RSC leaders met behind closed doors at House Republicans' annual retreat to hash out their stance. GOP lawmakers were at Trump National Doral golf course in Florida for three days of discussions on reconciliation and other fiscal deadlines looming on the horizon.

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They have been negotiating for weeks on how to use their razor-thin majorities in the House and Senate to pass massive conservative policy changes through the budget reconciliation process.

By reducing the threshold for Senate passage from 60 votes to a 51-seat simple majority, reconciliation allows a party in control of both congressional chambers to enact sweeping changes, provided they are relevant to budgetary and fiscal policy.

At 178 members, RSC is House Republicans' largest inter-conference group. It often acts as the House GOP's de facto "think tank" on policy matters.

The group is being led this year by Rep. August Pfluger, R-Texas. Its previous chairman is Rep. Kevin Hern, R-Okla., who was recently elected House Republican Policy Committee chair – an example of RSC's close ties to GOP leadership.

Republican lawmakers have their work cut out for them this year as they work to unify for congressional leaders' preferred timeline for the reconciliation process.

Speaker Mike Johnson, R-La., said Wednesday that he intends to have a House-wide vote on an initial budget resolution in late February.

But once Rep. Elise Stefanik, R-N.Y., departs for the Trump administration as expected, House Republicans will not be able to afford any defections to pass legislation along party lines. In the Senate, the GOP can lose two lawmakers to still meet the 51-vote threshold.

And President Donald Trump outlined several specific policies he wants Republicans to include in their reconciliation legislation – including no taxes on tips or overtime pay and more funding for the U.S.-Mexico border – which could add to the federal deficit if not paired with significant spending cuts.

Republicans have floated various ways to achieve those cuts, including adding work requirements to federal benefits and rolling back progressive regulations enacted during the Biden administration.

Johnson said he wanted Republicans' final product to be deficit-neutral or better.

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"Anything we do, is going to be deficit-neutral at least, and hopefully deficit-reducing, because we think we've got to change that trajectory," he said on Wednesday. "So that is part of the healthy discussion we've been having. And everyone has lots of opinions about that, of course. And, the opinions are welcomed."

The U.S. is running a cumulative deficit of $710 billion in fiscal year 2025 so far, according to the Bipartisan Policy Center. It's $200 billion more than the same period in FY 2024.

Meanwhile federal revenues were $1.1 trillion through December, a decrease of 2% from the same period prior, the group said.

DORAL, Fla. — The House GOP’s three-day annual retreat has ended without public progress on Republicans’ budget reconciliation plans, and some lawmakers are getting nervous about falling behind schedule.

"After two days at our House Republican winter retreat, we still do not have a plan on budget reconciliation and our Speaker and his team have not offered one," Rep. Marjorie Taylor Greene, R-Ga., wrote on X Wednesday morning.

"Basically, just get started doing something. We have only been presented with the same policy and budget cut proposals that we have been presented with for a month now at all our meetings and at a full Saturday conference meeting earlier this month."

Speaker Mike Johnson, R-La., told reporters Tuesday an initial "blueprint" would be "prepared by tomorrow, by the time we leave." 

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The budget reconciliation process allows the majority party in the House and Senate, in this case Republicans, to pass a broad-ranging conservative policy overhaul, provided the contents are relevant to the budget and other fiscal matters. It does so by lowering the threshold for passage in the Senate from 60 votes to 51.

It starts with a budget resolution that includes instructions for specific committees to work toward changes to fiscal policy law under their respective jurisdictions, including topline numbers.

When asked by reporters about whether he expects those broad toplines to emerge on Wednesday morning, Johnson said, "We'll be getting to that final number. What we've emphasized with our group is that we want to have some flexibility in the how the instructions are given to the committees.

"Stay tuned for the number. It will be substantial, because it has to be. I mean, we have a $36 trillion federal debt, and we're committing that in this process. Anything we do is going to be deficit neutral, at least, or deficit-reducing," he said.

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Johnson said later in the press conference, "The objective is to, by the time we leave here today, to have a blueprint that will inform the budget committee for when they work on that budget resolution."

The details and parameters of that blueprint are not immediately clear.

By Wednesday afternoon, however, a majority of lawmakers who were staying at President Donald Trump’s golf resort in Doral, Florida, left without a sense of their next steps.

"I think the general feeling is leadership needs to make a play call and start executing on it," one House GOP lawmaker told Fox News Digital. 

Asked about being optimistic about leaders making that call soon, the lawmaker said, "They better if they want to get this done."

Another House Republican said the meetings were "productive" but with a caveat — "as long as leadership takes our input, ideas and concerns seriously."

Other GOP lawmakers signaled they were exasperated by weeks of "listening sessions" among Republicans that have not led to specific directives from House leaders.

Some were more optimistic, however. A third House Republican told Fox News Digital, "I think Speaker Johnson has us pointed the right way and the eight committees that will make up reconciliation have a plan."

"I think it will come together," they said. 

Johnson said he was confident that the House Budget Committee would have its "blueprint" to work from when Congress is back "to the hill," which is next week.

"That's going to happen, and we'll get it through the whole chamber. And we'll be voting on that by late February," he said.

President Donald Trump is expected to address House Republicans at their annual retreat on Monday as lawmakers work to enact his goal for a busy first 100 days of the new administration.

It’s another sign of the House GOP conference’s push for unity with Trump that the conference is being held at Trump National Doral, his golf course and resort near Miami.

"He’s going to come and address the Republicans there, and we’re looking forward to that," Speaker Mike Johnson, R-La., confirmed to reporters last week.

Trump has made no secret of his intent to keep a close eye on the Republican majorities in the House and Senate this year, particularly as they discuss how to use their numbers to pass a massive conservative policy overhaul via the budget reconciliation process.

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By reducing the threshold for Senate passage from 60 votes to a 51-seat simple majority, reconciliation allows a party in control of both congressional chambers to enact sweeping changes, provided they’re relevant to budgetary and fiscal policy.

Meanwhile, lawmakers are also contending with the debt ceiling being reinstated this month after it was temporarily suspended in a bipartisan deal during the Trump administration.

And coming on March 14 is the deadline to avert a partial government shutdown, which Congress has extended twice since the end of the previous fiscal year on Oct. 1.

"I think obviously everyone is ready to get to work," Rep. Mike Lawler, R-N.Y., told Fox News Digital. "With President Trump’s inauguration behind us, now we’re focused on the task at hand – everything from the border to the tax package, energy and defense and national security, and our debt. What we need to do over the next two years to really fulfill the agenda that we laid out for the American people."

Lawler said he anticipated reconciliation would be a key focus of Trump’s remarks.

With razor-thin margins in the House and Senate, Republicans can afford few dissenters if they are going to get to the finish line. 

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Lawler is one of several Republicans who have drawn red lines in the discussions, vowing not to vote for a reconciliation bill that does not lift state and local tax (SALT) deduction caps – limits that have put a strain on suburban districts outside major cities.

He was realistic about setting expectations for their short Florida trip but was optimistic Republicans would eventually come together.

"I think we’re in the middle of the process and, you know, this is obviously not going to be resolved over these three days," Lawler said. "But this is, I think, an important opportunity for everyone to really sit down and spend their time going through a lot of these issues."

Speaker Mike Johnson, R-La., is inviting President Donald Trump to address a joint session of Congress on March 4.

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In a letter first obtained by Fox News Digital, Johnson wrote to the new president, "Thanks to your strong leadership and bold action in the first days of your presidency, the United States is already experiencing a resurgence of patriotism, unity, and hope for the future."

"Your administration and the 119th Congress working together have the chance to make these next four years some of the most consequential in our nation’s history," the speaker wrote.

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"To that end, it is my distinct honor and great privilege to invite you to address a Joint Session of Congress on Tuesday, March 4, 2025, in the Chamber of the U.S. House of Representatives, to share your America First vision for our legislative future. I eagerly await your response."

The letter comes just before Trump is expected to address House Republicans at their annual issues conference and retreat, being held this year in South Florida.

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House GOP lawmakers will be meeting at Trump’s golf course and resort in Doral for three days as they work to hash out a roadmap on government spending and plans for a major conservative policy overhaul.

Trump signaled for weeks before being sworn in that he was positioning for a very active first 100 days of his new administration.

Republicans now control both the House and Senate as well as the White House. But with razor-thin majorities in both chambers, GOP lawmakers will need to vote in near lock-step to carry out Trump’s plans.

House Speaker Mike Johnson, R-La., on Friday recounted a meeting with President Biden from early last year when the president appeared to forget he signed an executive order pausing the export of liquified natural gas (LNG).

Johnson publicly recalled the story for the first time to Bari Weiss during an episode of her podcast "Honestly" for The Free Press after saying that through his "personal observation" in dealing with Biden, the president "has not been in charge for some time." Johnson’s story was first reported by the Wall Street Journal in June, though the newspaper’s reporting relied on anonymous sources at the time.

When Weiss asked Johnson to elaborate on his observations, the speaker began his tale of how Biden’s staff kept brushing off his attempts to schedule a meeting with the president in January 2024 amid "big national concerns" that Johnson said he "was losing sleep over."

Johnson said that Biden’s staff finally relented after some pressure from the media and invited him to the Oval Office to meet with the president. Johnson, however, said the meeting did not start as expected.

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"I show up and I realize it's actually an ambush 'cause it's not just me and the president," Johnson said. "It's also Kamala Harris, Chuck Schumer, Hakeem, you know, The CIA Director."

Johnson said the group began to "hot box" him on Ukraine funding when Biden asked if he could have the room with him, a request that Johnson said left the president’s staff visibly concerned.

Once Biden and Johnson were alone in the Oval Office, the speaker asked the president about his pause on LNG exports. 

"I cannot answer this from my constituents in Louisiana," Johnson recalled telling Biden. "Sir, why did you pause LNG exports to Europe? Liquefied natural gas is in great demand by our allies. Why would you do that? Cause you understand we just talked about Ukraine, you understand you are fueling Vladimir Putin’s war machine, because they gotta get their gas from him."

Johnson recounted how a stunned Biden replied: "I didn’t do that."

Biden initiated a pause on new LNG export permits in January 2024, a move which has been widely criticized by the oil community and bipartisan lawmakers in the House.

Johnson said that when he reminded the president of the executive order he had signed just weeks ago, Biden denied that what he had signed was a pause on LNG.

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Johnson said he argued that the pause would do "massive damage to our economy, national security," and he even suggested that the president’s secretary print out a copy of the order so that the two of them could read it together.

"He genuinely did not know what he had signed," Johnson said. "And I walked out of that meeting with fear and loathing because I thought, ‘We are in serious trouble—who is running the country?’ Like, I don't know who put the paper in front of him, but he didn’t know."

Biden’s LNG pause threatens nearly 1 million jobs over the next two decades if the restriction remains in place, according to a study by the National Association of Manufacturers, which Fox News Digital previously reported on.

The export ban would stifle the U.S. GDP by between $122.5 billion and $215.7 billion in 2044, while between $26.9 billion and $47.7 billion in tax and royalty revenues to federal, state and local governments would be at risk in 2044 if the permit pause persists, the study found.

President-elect Trump, however, reportedly "plans to go strong on the issue" of LNG exports when he assumes office, sources told Reuters in November.

Fox News Digital’s Aubrie Spady and Eric Revell contributed to this report.

As the new U.S. Congress convened, the 98 hostages being held by Hamas – including seven Americans – must be an immediate priority. 

The fact that the 118th Congress failed to secure the release of American citizens held for over a year in Hamas dungeons in Gaza will forever remain a stain on its record. The 119th session would do well to advocate for their release in actions and not just words. 

Our newly elected officials should wield the full power of both chambers to support President-elect Trump’s sentiments that there will be "hell to pay" if the hostages aren’t released by his inauguration and follow up with those that defy the demand of the president. 

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While the negotiations with Hamas flow mostly through the Oval Office, Congressional bodies such as the Foreign Affairs, Finance, Appropriations, and Judiciary committees, as well as individual House leaders, must play a more crucial role in demonstrating there is no daylight between the incoming administration and Congress on the topic of U.S. hostages.

The Senate’s Foreign Affairs Committee will undoubtedly play a key role as the only committee with jurisdiction to deliberate and report on treaties submitted by the president to the Senate for consideration. The committee can directly summon ambassadors involved in the hostage negotiations such as those representing Qatar, Turkey, and Egypt, to demand to know why U.S. citizens are still being held hostage. It can also make direct correlation between countries actively seeking with the U.S. long-term strategic defense treaties as in the case of Saudi Arabia to actively supporting the release of American hostages.

As for the Judiciary Committee, it has a critical role in providing oversight over the Department of Justice and the agencies under the department's jurisdiction, including the FBI and the Department of Homeland Security. 

Forty-seven U.S. citizens were killed by Hamas during the brutal Oct. 7, 2023 attack, and the judiciary should enforce indictments of those individuals accused of supporting the murder of Americans abroad who are being hosted by U.S. allies such as Turkey and Qatar. 

Furthermore, the committee should further expand the Anti-Terrorism Act, enabling families of victims to sue in a civil court commercial entities connected to these crimes. This would send a clear message: beware those that believe they can support terrorist activities unnoticed. It should also hold the Office of Foreign Assets Control (OFAC) accountable, demanding it puts timely and significant sanctions on entities supporting terrorist organizations.

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The Senate Appropriations Committee also has a role to play as defined by the Constitution, which requires "appropriations made by law" as a condition for expenditures made by the U.S. Treasury. In other words: Follow the money. Countries seeking U.S. financial aid should be unreservedly respectful of U.S. demands, especially on the topic of unlawful detention of Americans. For example, in September, the committee approved $1.3 billion in aid to Egypt. Such aid should have been conditioned on Cairo destroying all tunnels leading from Egypt into Gaza, which were used to transfer the very weapons utilized to kill U.S. citizens and to take them hostage.

The new Congress has a moral and legal obligation to ensure the return of the seven American hostages. What power does a global superpower have if it cannot even secure the release of its citizens from a floundering terror group? It must show its commitment in the "House of the People" via all of its political, financial, and judicial levers in order to help bring the American and all the other hostages home. 

By taking a more vigorous approach vis a vis countries and commercial entities that have a proven capability of influencing Hamas, the U.S. will demonstrate its commitment to its citizens and its unwillingness to tolerate terrorism and human rights abuses. 

As we and countless others watch and wait, hopeful for the return of our loved ones, it is imperative that the U.S. with the active support of Congress act decisively, and without delay. I have a dream that next week, when I attend President Trump’s inauguration, he will say he secured the release of all of the U.S. hostages, just like President Reagan did at his inauguration in 1981.

Former Speaker Newt Gingrich, who led Republicans to their first House majority in four decades in 1994, said Saturday the House Freedom Caucus should recall how his own caucus led conservatives to power within the party.

Gingrich tweeted that he and other conservatives had developed "positive action principles" in 1983 as part of what they called the Conservative Opportunity Society.

"[Those] led 11 years later to the Contract with America and the first GOP House Majority in 40 years."

"If the Freedom Caucus would study them, they could be dramatically more effective," Gingrich said, going on to cite and agree with a sentiment from political reporter Mark Halperin’s "Wide World of News" newsletter.

"[T]he Freedom Caucus is a bunch of rebels with a series of causes but no coherent path to achieving said causes," Halperin wrote.

In the 1980s, although Ronald Reagan was in the White House, Boston Democratic Speaker Tip O’Neill wielded strong control of the House. O’Neill and Reagan had a notably friendly but ideologically disparate relationship.

Coinciding with the early days of C-SPAN televising live floor proceedings, Gingrich would often take to the well of the House in the late-night hours and address conservatives’ issues to a mostly empty chamber but with a captive audience on the new TV format.

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Gingrich biographer Craig Shirley told Fox News Digital on Saturday that the Freedom Caucus should study the work of their comparative predecessor, the Conservative Opportunity Society, as well as the path Gingrich led from a low-profile congressman to speaker.

"I guess the word brilliant is thrown around so, so cavalierly. So let me just say, it was extremely smart politics to make the case for conservative governance," Shirley said of Gingrich’s work in the 1980s and 1990s.

"Reagan had already blazed that path eight years before Gingrich did."

While critics say the GOP has shifted hard to the right on some issues and softened on others, Shirley said it’s essentially the same as it was during Gingrich’s rise.

"Less government, more freedom, less taxes, strong national defense, pro-life."

Former Rep. Vin Weber, R-Minn., another top member of Gingrich’s conservative group, said in a PBS interview that there have not been too many groups like the Conservative Opportunity Society (or the Freedom Caucus, which hadn’t been formed at the time of the interview) and that there was the same issue with apprehension over angering their party leaders.

Weber said there had been a few small intra-caucus conservative groups prior to the Reagan era, including one in the 1960s led by then-Rep. Donald Rumsfeld, R-Ill. – who would go on to serve as Pentagon chief two times.

On the last day of the 1982 session, Gingrich approached Weber and asked, "What are you doing next year and for the next 10 years after that?." 

"I thought that was interesting and I said, ‘I expect to be back here, but nothing special other than that,’" Weber recalled. 

"What he was saying was that he, as one person, was not being effective…. He identified me in the [GOP] conference as somebody [who] had been supportive of his point of view and maybe had some ability to organize things," Weber said.

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Shirley said the current Freedom Caucus has the rare opportunity to achieve their goals if they play their cards right, with full Republican control of Washington.

"They don't have a ‘contract,’ but they have the next best thing there. They have a core set of issues and an ideology that they can easily follow," he said, adding that "no one should ever doubt" Speaker Mike Johnson’s commitment to "Reaganite" principles.

In additional comments to Fox News’ "Hannity," Gingrich said the one-round vote Friday was a "great victory" for Johnson, R-La.

"[He’s] just a decent, hardworking, intelligent human being.… I could not have been the kind of speaker he is. I don't have the patience. I don't have that ability to just keep moving forward. It's really very extraordinary."

Meanwhile, Freedom Caucus member Ralph Norman, R-S.C., told Fox News the group met with Johnson earlier and that he "just didn't come away with the feeling that the ‘umph’ or the willingness to fight for Trump's agenda was there."

"And I use as a backdrop what’s happened the last 14 months, we had 1500-page omni-bills that you couldn’t read – where you had no spending cuts to offset $100 billion in new spending."

"And I know we had a slim majority, but that's over with now. What we wanted to impress with [Johnson] yesterday was, are you going to fight for these things that we've been asking for, like a balanced budget? Like offsets? Like getting behind all of the Trump agenda?"

Norman, along with Rep. Keith Self, R-Texas, initially did not vote for Johnson, which would have set up a second round of speaker votes.

But, Norman told "The Story" that that action was the "only way to let my voice be heard."

He said Johnson "gave his word" to fight for the things he mentioned to Fox News, and that agreement, plus a message from Trump that Johnson was the only speaker candidate with support in the caucus, guided his decision to ultimately support the Louisianan.

In a "Dear Colleague" letter released Friday, House Freedom Caucus Chairman Andy Harris, R-Md., and his members expressed several policy points that Johnson should commit to in order to "reverse the damage of the Biden-Harris administration," as well as achieve long-standing conservative goals.

The letter indicated they had voted for Johnson because of their "steadfast support" of Trump and ensuring the Jan. 6 elector certification can run smoothly.

"We did this despite our sincere reservations regarding the Speaker’s track record over the past 15 months."

The caucus called for Johnson to modify the House calendar so its schedule is as busy as the Senate’s, ensure reconciliation legislation reduces spending and deficits in "real terms," and halt violations of the "72-hour-rule" for debate on amendments to bills.

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They also demanded Johnson not rely on Democrats to pass legislation that a majority of his own caucus won’t support.

In comments on "The Story," Norman said he believes Johnson now understands – through the initial silence of several Republicans during the first roll call and his and Self’s initial non-Johnson-vote – that he will have to work to consider the conservative bloc’s demands.

While the high-stakes fight to lead the House of Representatives is over, Speaker Mike Johnson’s politically perilous year is just beginning.

Winning the speaker’s gavel was no easy feat considering Johnson, R-La., had no Democratic support and could only lose one fellow Republican, thanks to the House GOP’s razor-thin majority.

All House Republicans except for Rep. Thomas Massie, R-Ky., voted for Johnson on Friday afternoon. Two GOP lawmakers who had initially voted for someone other than Johnson, Reps. Keith Self, R-Texas, and Ralph Norman, R-S.C., were eventually persuaded to switch their votes after speaking with Johnson and President-elect Trump.

Johnson will have to navigate a similarly slim margin over the next few months as he helps carry out what President-elect Donald Trump promised would be a very active first 100 days of his new administration.

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"There’s a lot of expectations and potential pitfalls," Marc Short, who served as director of legislative affairs during the first Trump administration, told Fox News Digital in an interview late last month. 

Just the first half of 2025 alone is expected to see at least three separate fiscal fights.

Johnson, meanwhile, is set to lose two House Republicans – Reps. Elise Stefanik of New York and Mike Waltz of Florida. Both members are joining the Trump administration at the end of this month.

It will reduce his House GOP majority to just 217 seats, compared to 215 for Democrats, which means Republicans will need to vote in lock-step to pass any bills on a party-line vote. 

Special elections to replace Waltz and retired Rep. Matt Gaetz, R-Fla., are set for April. An election to replace Stefanik has not yet been set.

Meanwhile, Republicans are gunning to pass two massive conservative policy and spending overhauls via a process called "reconciliation," which lowers the threshold for passage in the Senate from 60 votes to a simple majority for certain budgetary issues.

Both Republicans and Democrats have tried to use reconciliation to pass significant fiscal policy changes that the other side normally opposes, meaning it takes extraordinary levels of intra-party cooperation in both the House and Senate.

"There’s huge expectations on budget reconciliation, and that’s really hard, even when you’ve got wide margins. To think you’re going to do it twice in a year with those margins, I think is an enormously high expectation that seems to be unreasonable," Short told Fox News Digital.

"And add onto that another funding bill in three months, plus a debt ceiling fight."

Along with reconciliation bills – which are unlikely to get much, if any, Democratic support – Republicans will also have to grapple with the government funding deadline they just punted to March 14.

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House and Senate lawmakers passed a short-term extension of fiscal year (FY) 2024’s government funding levels in December to give negotiators more time to hash out the rest of FY 2025.

Congress will risk plunging the government into a partial shutdown if the House and Senate does not pass another funding extension or set new priorities for the remainder of FY 2025 by then.

The next government funding deadline will come at the end of the fiscal year on Sept. 30.

That’s not all Johnson will have to focus on during those months, however.

A bipartisan agreement struck in 2023 suspended the U.S. debt limit through January 2025 – after which the Treasury Department will be forced to take "extraordinary measures" to avoid a national credit default.

The debt limit refers to how much debt the U.S. government can accrue while making expenditures it has already committed to. As of Christmas Eve, the national debt — which measures what the U.S. owes its creditors — fell to $36,161,621,015,445.57, according to the latest numbers published by the Treasury Department. 

Raising the debt limit is also traditionally a fraught political battle, with both Republicans and Democrats seeking any possible leverage to attach their own policy goals to the negotiations.

A recent model produced by the Economic Policy Innovation Center (EPIC) projects the Treasury’s "extraordinary measures" will carry the U.S. through mid-June or earlier, giving Congress potentially six months to act.