Negotiations have made progress, but are not easy.

The US Treasury warned that the country will run out of money to pay its bills on 5 June without a deal.

Republicans have been seeking spending cuts in exchange for raising the debt limit.

An emerging deal would limit most spending for two years, exempting military and veterans programmes.

Issues such as tougher eligibility for government aid are a sticking point.

The US government is currently in negotiations to reach a deal to increase the debt ceiling and fund the government.

Republicans are seeking cuts to social programs, while Democrats have proposed increases in certain taxes.

Investors are worried about the potential impact of a default and are demanding higher interest rates for certain government bonds.

Any agreement must be turned into a legislative text and approved by Congress, with a vote expected early next week.

Some Republicans and Democrats have raised concerns about the potential spending limits and tax increases, respectively.

The Senate would also have to vote on the bill, which would then go to the White House for signing.

Lawmakers could temporarily lift the debt ceiling to give the negotiations more time.