House Speaker Nancy Pelosi is rejecting the White House's most recent debt ceiling proposal, which included $150 billion in spending cuts, Bloomberg News reported Friday.
The White House sent a two-year budget agreement to Pelosi late Thursday, requesting the Democrats select $150 billion in spending cuts from a list of $574 billion saving opportunities, the news service reported, citing a Democratic official close to the talks.
The White House proposal is a starting point, officials told Bloomberg.
Negotiations between the Trump administration and congressional leaders have heightened recently in efforts to reach an agreement before Congress' recess on July 26. Conservative estimates from Treasury Secretary Steven Mnuchin say the U.S. could lose its spending ability as early as September.
Pelosi's rejection of the deal, which reportedly didn't include any revenue or tax increases, comes after Mnuchin told CNBC on Thursday the market should not be "concerned" about a debt ceiling deal getting passed.
Mnuchin said neither party wants to put the U.S. government at risk of defaulting.
Both sides are hoping to come to an agreement on Friday in order to get a House vote next week, Bloomberg said.