Both parties have raised the stakes in a battle over lifting the statutory debt limit. And House Republicans are promising big spending cuts while they try to protect the Pentagon’s budget. CQ Roll Call’s David Lerman, Lindsey McPherson, Paul M. Krawzak and Caroline Coudriet outline the biggest fiscal challenges of the year and assess prospects for possible compromise.

Show Notes:

• Manchin floats fiscal commissions for debt limit bill
• Parties dig in for protracted fight over debt ceiling
• Yellen warns Treasury could hit debt ceiling as early as June
• McCarthy concessions raise stakes on budget, debt limit