WASHINGTON (AP) — President Joe Biden and House Speaker Kevin McCarthy met Monday after a weekend of on again, off again negotiations over raising the nation’s debt ceiling and mere days before the government could reach a “hard deadline” and run out of cash to pay its bills.

The two sides are working to reach a budget compromise before June 1, when Treasury Secretary Janet Yellen has said the country could default.

Speaking to reporters after Monday’s meeting, McCarthy said the two sides had not yet reached an agreement but the meeting was “productive.” In his own statement following the Oval Office sit-down, Biden echoed those sentiments.

“We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement,” Biden said. Their handpicked negotiators will continue to meet.

McCarthy and Republicans are insisting on spending cuts in exchange for raising the debt limit. Biden has come to the negotiating table after balking for months but says the GOP lawmakers will have to back off their “extreme positions.”

On Sunday evening, negotiators met again and appeared to be narrowing on a 2024 budget year cap that could resolve the standoff. After speaking with Biden by phone as the president traveled home from a trip to Asia, McCarthy sounded somewhat optimistic. But he warned that “there’s no agreement on anything.”

A look at the negotiations and why they are happening:

WHAT IS THE DEBT CEILING FIGHT ALL ABOUT?

Once a routine act by Congress, the vote to raise the debt ceiling allows the Treasury Department to continue borrowing money to pay the nation’s already incurred bills.

The vote in more recent times has been used as a political leverage point, a must-pass bill that can be loaded up with other priorities.

House Republicans, newly empowered in the majority this Congress, are refusing to raise the debt limit unless Biden and the Democrats impose federal spending cuts and restrictions on future spending.

The Republicans say the nation’s debt, now at $31 trillion, is unsustainable. They also want to attach other priorities, including stiffer work requirements on recipients of government cash aid, food stamps and the Medicaid health care program. Many Democrats oppose those requirements.

Biden had insisted on approving the debt ceiling with no strings attached, saying the U.S. always pays its bills and defaulting on debt is non-negotiable.

But facing a deadline as soon as June 1, when Treasury says it will run out of money, Biden launched negotiations with Republicans.

IS IT CLOSE TO BEING RESOLVED?

There are positive signs, though there have been rocky moments in the talks.

Start-stop negotiations were back on track late Sunday, and all sides appear to be racing toward a deal. Negotiators left the Capitol after 8 p.m. Sunday and said they would keep working.

McCarthy said after his call with Biden that “I think we can solve some of these problems if he understands what we’re looking at.”

The speaker added: “We have to spend less money than we spent last year.”

Biden, for his part, said at a press conference in Japan before departing: “I think that we can reach an agreement.”

But reaching an agreement is only part of the challenge. Any deal will also have to pass the House and Senate with significant bipartisan support. Many expect that buy-in from the White House and GOP leadership will be enough to muscle it over the finish line.

WHAT ARE THE HANGUPS?

Republicans want to roll back spending to 2022 levels and cap future spending for the next decade.

Democrats aren’t willing to go that far to cut federal spending. The White House has instead proposed holding spending flat at the current 2023 levels.

There are also policy priorities under consideration, including steps that could help speed the construction and development of energy projects that both Republicans and some Democrats want.

Democrats have strenuously objected to a Republican push to impose stiffer work requirements on people who receive government aid through food stamps, Medicaid health care and the cash assistance programs.

Biden, though, has kept the door open to some discussion over work requirements.

WHAT HAPPENS IF THEY DON’T RAISE THE DEBT CEILING?

A government default would be unprecedented and devastating to the nation’s economy. Yellen and economic experts have said it could be “catastrophic.”

There isn’t really a blueprint for what would happen. But it would have far-reaching effects.

Yellen has said it would destroy jobs and businesses and leave millions of families who rely on federal government payments to “likely go unpaid,” including Social Security beneficiaries, veterans and military families.

More than 8 million people could lose their jobs, government officials estimate. The economy could nosedive into a recession.

“A default could cause widespread suffering as Americans lose the income that they need to get by,” she said. Disruptions to federal government operations would impact “air traffic control and law enforcement, border security and national defense, and food safety.”

IS THERE A BACKUP PLAN IF TALKS FAIL?

Some Democrats have proposed that they could raise the debt ceiling on their own, without help from Republicans.

Progressives have urged Biden to invoke a clause in the Constitution’s 14th Amendment that says the validity of the public debt in the United States “shall not be questioned.” Default, the argument goes, is therefore unconstitutional.

Supporters of unilateral action say Biden already has the authority to effectively nullify the debt limit if Congress won’t raise it, so that the validity of the country’s debt isn’t questioned. The president said Sunday that it’s a “question that I think is unresolved,” as to whether he could act alone, adding he hopes to try to get the judiciary to weigh in on the notion for the future.

In Congress, meanwhile, House Democratic leader Hakeem Jeffries has launched a process that would “discharge” the issue to the House floor and force a vote on raising the debt limit.

It’s a cumbersome legislative procedure, but Jeffries urged House Democrats to sign on to the measure in hopes of gathering the majority needed to trigger a vote.

The challenge for Democrats is that they have only 213 members on their side — five short of the 218 needed for a majority.

Getting five Republicans to cross over and join the effort won’t be easy. Signing onto a “discharge” petition from the minority is seen as a major affront to party leadership, particularly on an issue as important as the debt ceiling. Few Republicans, if any, may be willing to suffer the consequences.

BOSTON (AP) — Scores of Boston University students turned their backs on the head of one of Hollywood’s biggest studios, and some shouted “pay your writers,” as he gave the school’s commencement address Sunday in a stadium where protesters supporting the Hollywood writers’ strike picketed outside.

About 100 protesters chanted “No wages, no pages,” waved signs and were accompanied by an inflatable rat outside Nickerson Field as David Zaslav, president and CEO of Warner Bros. Discovery, gave his address inside the stadium. Thousands of graduating students, family members and educators attending the graduation ceremony had to walk by the protesters to enter the stadium.

Above the stadium, a small plane flew a banner that read, “David Zaslav — pay your writers.”

Kim Caramele, a writer and producer from North Stonington, Connecticut, said she hoped the protesters’ presence at the graduation ceremony helped give students a different perspective on what they should value in life.

“The writers being here today can help show the students that wealth is different than good,” said Caramele, a winner of Emmy and Peabody awards for work on her sister’s show, “Inside Amy Schumer.”

Inside the stadium, scores of students wearing red graduation gowns stood up during Zaslav’s speech and turned their backs on him. Other students booed during his speech and shouted in support of the striking writers.

Zaslav, a graduate of the university’s law school in the mid-1980s, was a contentious pick, with many alumni taking to social media with their objections.

In a statement after the event, Zaslav said, “I am grateful to my alma mater, Boston University, for inviting me to be part of today’s commencement and for giving me an honorary degree, and, as I have often said, I am immensely supportive of writers and hope the strike is resolved soon and in a way that they feel recognizes their value.”

Saying the rise of streaming has hurt their earning power, about 11,500 members of the Writers Guild for America walked off the job at the beginning of May, after talks on a new contract broke down, and they haven’t returned to the negotiating table since. It’s the first writers’ strike — and the first Hollywood strike of any kind — in 15 years.

The union is seeking higher minimum pay, more writers per show and shorter exclusive contracts, among other demands — all conditions it says have been diminished in the content boom driven by streaming.

The Alliance of Motion Picture and Television Producers has said that it had offered “generous increases in compensation for writers as well as improvements in streaming residuals,” including the highest first-year wage increase in a WGA contract in more than 25 years, and the creation of a new category of rates that would mean a new, higher minimum for mid-level writers.