Treasury Secretary Steven Mnuchin says the White House and House Speaker Nancy Pelosi have reached an agreement on spending levels for defense and non-defense spending bills.
Mnuchin made the remarks during a CNBC interview on Thursday saying, “We’ve reached an agreement between the administration, the House and the Senate on top line numbers, for both year one and year two.”
He went on to say the duo are now planning to discuss structural issues and spending offsets.
The left has reportedly advocated for equal increases in both defense and non-defense spending as well as a significant spike in spending for veteran health care.
Mnuchin continued by saying despite the progress, the pair have not yet agreed to raise the debt ceiling, although that would be the next step if no deal is reached.
Speaker Pelosi has previously made it clear she would ideally like to reach a deal this week and would ultimately like to pass it before the next recess scheduled for next week.
Pelosi weighed in on the dialogue earlier this week saying she believed the pair were seeing progress in hopes of avoiding another government shutdown.
Mnuchin issued a warning last week the Treasury Department would likely run out of money by September if officials do not reach a deal before the congressional recess.
Munition is expected to speak with Speaker Pelosi again later on Thursday.