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On its surface, the unfolding debt-ceiling crisis looks a lot like the confrontation in 2011 between congressional Republicans and then-President Barack Obama. Once again, a new GOP majority in the House is using the threat of a national default as leverage to force a first-term Democratic president to agree to spending cuts in exchange for lifting the federal borrowing limit. A first-ever default could crash the markets and trigger a recession. But, as in 2011, the two parties remain far apart, with a deadline to act approaching rapidly.

Eric Cantor knows the feeling well. Twelve years ago, he was the House majority leader deputized by then-Speaker John Boehner to negotiate an agreement with Joe Biden, who was Obamas vice president at the time. Cantor left Congress in 2014 after a stunning primary defeat that presaged the GOPs anti-establishment, anti-immigration lurch toward Donald Trump two years later. Hes now a senior executive at a Wall Street investment bank.

I called him up this week to ask what he had learned from the 2011 negotiations and how he sees todays fight going. He warned that the risks of failureand with it, economic calamityare significantly greater this time around.

Read: The logic behind Bidens refusal to negotiate the debt ceiling

Cantor and Biden failed to strike a deal on their own in 2011; that task ultimately fell to Biden and Senate GOP Leader Mitch McConnell. But Cantor told me he was impressed with Bidens willingness to bargain: He was very much in the mode of negotiating, compromising.

Not this timeBiden has rebuffed pleas from Speaker Kevin McCarthy for one-on-one negotiations. President Biden is not the same person as Vice President Biden was, Cantor said, a bit ruefully. Nor has Biden empowered anyone in his administration to bargain at all.

Theyve not negotiated a darn thing, Cantor said.

In 2011, Obama engaged with Republicans months in advance of the fiscal deadline, and the talks between Cantor and Biden, along with separate negotiations between Obama and Boehner, helped set parameters for the agreement that materialized when the nation was on the brink of default.

The present lack of negotiations is likely a direct result of how things went back in 2011. Though both sides came to an agreement eventually, the near miss still caused a stock-market slide and the downgrading of the U.S. credit rating. When the U.S. bumped up against the debt ceiling again later in the Obama presidency, the administration was less inclined to negotiateand a chastened GOP allowed the limit to be lifted without a fight. The lesson Democrats drew from that experience was never again to concede to the Republican premise that increasing the borrowing limit should be subject to legislative haggling.

Bidens no-negotiation stance, however, might not be sustainable. On Monday, Treasury Secretary Janet Yellen informed congressional leaders that the country would run out of fiscal wiggle roomafforded by the use of extraordinary measures that stretch federal fundsas soon as June 1. That deadline is earlier than many people in Washington expected, and Yellens warning injected fresh urgency into the effort to find a way out of the crisis. In response, Biden summoned McCarthy, McConnell, and their Democratic counterparts to a White House meeting next week.

In 2011, McCarthy was one rung beneath Cantor in the House GOP hierarchy. Now, as speaker, hes operating with a much thinner margin than Boehner and Cantor, who had more than 20 votes to spare. The GOPs five-vote majority has less leverage, but it is more dug-in against the Democrats, and the speakership that McCarthy fought so hard to secure could be at risk if he were to allow the debt ceiling to be raised without extracting sufficient budget cuts or other concessions. The moderate dealmakers in the House Republican Conference have all but vanished. Boehner was ultimately forced out in 2015 by a conservative revolt, but he did not face the threat of an ouster that now hangs over McCarthy.

Although McCarthy was able to muster enough votes last week to pass an opening bid through the Housea huge victory, Cantor told mehes unlikely to secure the same level of budget cuts that Republicans did in 2011. Obama and Boehner had traded proposals for entitlement cuts and tax increases, and the deal Congress eventually passed triggered $1.2 trillion in spending reductions over a 10-year period. Under pressure from former President Donald Trump, McCarthy isnt even pushing this time for cuts to Medicare or Social Security. The likeliest solution, according to potential congressional dealmakers, is an agreement that would merely slow the growth of federal spending, not reverse it. Youre just not going to move the needle as far, Cantor said.

Cantor remains in touch with McCarthy; the two, along with the Republican who succeeded Boehner as speaker, Paul Ryan, were once a conservative triumvirate known as the Young Guns (they were already in their 40s, but this is Congress), who rose quickly in the House GOP. When I asked him whether it was possible for McCarthy to emerge victorious in the eyes of his party, Cantor seemed doubtful. Look, hes got a very, very slim majority, he said. And given where conservative media and social media is on the issue, its just hard to be able to create a situation where you can declare a win and have everyone go along with it.

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For now, Cantor said, McCarthy is doing what he needs to do to give himself space to negotiate. Kevin has demonstrated a will to fight, and I think thats the most important thing right now for members to seehes willing to go to bat for them and fight, he said. So he comes into this with a fair amount of capital to work with.

Biden is also in fighting mode at the moment, in contrast to his bargaining mode in 2011. Cantor argued that ironically, Biden had more authority to hammer out a deal when he was Obamas lieutenant than he does now. Hes captive of the extreme left and the progressives in his party, he said.

This is mostly spin from a Republican who remains, even in his political retirement, a party loyalist. And Biden would surely dispute the suggestion that he would cut a deal with Republicans if left to his own devices; he came away from the 2011 experience with the same determination as others in his party not to negotiate again over the debt ceiling. But Cantors point is that because progressives are more ascendant now than they were then, Biden has less room to maneuver, especially as he launches a reelection bid for which hell need the lefts enthusiastic support.

Cantor offered a couple of scenarios for how Biden and McCarthy could avert a default. The most likely involves Washingtons favorite fallback, the punt: Republicans would agree to a short-term increase in the debt ceiling in exchange for Biden committing to serious fiscal negotiations later in the year, when both sides would face a harder deadline. They could also reach a broader agreement in the next few weeks, but Cantor did not sound particularly hopeful. I still dont think we go into default, the veteran of congressional brinkmanship told me, but I think the path is certainly narrower, and the options available to either side are narrower.

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Politics

‘A threat to national security’: Fears drones could be used to lift inmates out of prisons

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Drones are sending 'overwhelming amounts' of drugs into prisons - and could help inmates escape, report warns

Sophisticated drones sending “overwhelming amounts” of drugs and weapons into prisons represent a threat to national security, according to an annual inspection report by the prisons watchdog.

HMP chief inspector of prisons Charlie Taylor has warned criminal gangs are targeting jails and making huge profits selling contraband to a “vulnerable and bored” prison population.

The watchdog boss reiterated his concerns about drones making regular deliveries to two Category A jails, HMP Long Lartin and HMP Manchester, which hold “the most dangerous men in the country”, including terrorists.

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Ex-convict: Prison is ‘birthing bigger criminals’

Mr Taylor said “the police and prison service have in effect ceded the airspace” above these two high-security prisons, which he said was compromising the “safety of staff, prisoners, and ultimately that of the public”.

“The possibility now whereby we’re seeing packages of up to 10kg brought in by serious organised crime means that in some prisons there is now a menu of drugs available,” he said. “Anything from steroids to cannabis, to things like spice and cocaine.”

“Drone technology is moving fast… there is a level of risk that’s posed by drones that I think is different from what we’ve seen in the past,” warned the chief inspector – who also said there’s a “theoretical risk” that a prisoner could escape by being carried out of a jail by a drone.

He urged the prison service to “get a grip” of the issue, stating: “We’d like to see the government, security services, coming together, using technology, using intelligence, so that this risk doesn’t materialise.”

The report highlights disrepair at prisons around the country
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The report highlights disrepair at prisons around the country

The report makes clear that physical security – such as netting, windows and CCTV – is “inadequate” in some jails, including Manchester, with “inexperienced staff” being “manipulated”.

Mr Taylor said there are “basic” measures which could help prevent the use of drones, such as mowing the lawn, “so we don’t get packages disguised as things like astro turf”.

Responding to the report, the Prison Advice and Care Trust (PACT) said: “The ready access to drugs is deeply worrying and is undermining efforts to create places of rehabilitation.”

Mr Taylor’s report found that overcrowding continues to be what he described as a “major issue”, with increasing levels of violence against staff and between prisoners, combined with a lack of purposeful activity.

Some 20% of adult men responding to prisoner surveys said they felt unsafe at the time of the inspection, increasing to 30% in the high security estate.

Andrea Coomber, chief executive of the Howard League for Penal Reform, said: “This report is a checklist for all the reasons the government must prioritise reducing prison numbers, urgently.

“Sentencing reform is essential, and sensible steps to reduce the prison population would save lives.”

Read more UK news:
The human impact of the Post Office scandal
Govt to ban ‘appalling’ NDAs that silence victims

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May: Male prison capacity running at 99%

The report comes after the government pledged to accept most of the recommendations proposed in the independent review of sentencing policy, with the aim of freeing up around 9,500 spaces.

Those measures won’t come into effect until spring 2026.

Prisons Minister Lord Timpson said Mr Taylor’s findings show “the scale of the crisis” the government “inherited”, with “prisons dangerously full, rife with drugs and violence”.

He said: “After just 500 prison places added in 14 years, we’re building 14,000 extra – with 2,400 already delivered – and reforming sentencing to ensure we never run out of space again.

“We’re also investing £40m to bolster security, alongside stepping up cooperation with police to combat drones and stop the contraband which fuels violence behind bars.”

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World

Israeli soldiers ‘psychologically broken’ after ‘confronting the reality’ in Gaza, UN expert says

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Israeli soldiers 'psychologically broken' after 'confronting the reality' in Gaza, UN expert says

A UN expert has said some young soldiers in the Israeli Defence Forces are being left “psychologically broken” after “confront[ing] the reality among the rubble” when serving in Gaza.

Francesca Albanese, the UN Human Rights Council’s special rapporteur on the occupied Palestinian territories, was responding to a Sky News interview with an Israeli solider who described arbitrary killing of civilians in Gaza.

She told The World with Yalda Hakim that “many” of the young people fighting in Gaza are “haunted by what they have seen, what they have done”.

“It doesn’t make sense,” Ms Albanese said. “This is not a war, this is an assault against civilians and this is producing a fracture in many of them.

“As that soldier’s testimony reveals, especially the youngest among the soldiers have been convinced this is a form of patriotism, of defending Israel and Israeli society against this opaque but very hard felt enemy, which is Hamas.

“But the thing is that they’ve come to confront the reality among the rubble of Gaza.”

An Israeli soldier directs a tank at a staging area near the border with the Gaza Strip, in southern Israel, Tuesday, July 1, 2025. (AP Photo/Ariel Schalit)
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An Israeli soldier directs a tank near the border with the Gaza Strip, in southern Israel. Pic: AP

Being in Gaza is “probably this is the first time the Israeli soldiers are awakening to this,” she added. “And they don’t make sense of this because their attachment to being part of the IDF, which is embedded in their national ideology, is too strong.

More on War In Gaza

“This is why they are psychologically broken.”

Jonathan Conricus, a former IDF spokesman who is now a senior fellow at the Foundation for Defence of Democracies, said he believes the Sky News interview with the former IDF solider “reflects one part of how ugly, difficult and horrible fighting in a densely populated, urban terrain is”.

“I think [the ex-soldier] is reflecting on how difficult it is to fight in such an area and what the challenges are on the battlefield,” he said.

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Ex-IDF spokesperson: ‘No distinction between military and civilians’

‘An economy of genocide’

Ms Albanese, one of dozens of independent UN-mandated experts, also said her most recent report for the human rights council has identified “an economy of genocide” in Israel.

The system, she told Hakim, is made up of more than 60 private sector companies “that have become enmeshed in the economy of occupation […] that have Israel displace the Palestinians and replace them with settlers, settlements and infrastructure Israel runs.”

Israel has rejected allegations of genocide in Gaza, citing its right to defend itself after Hamas’s attack on 7 October 2023.

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‘Israel has shifted towards economy of genocide’

The companies named in Ms Albanese’s report are in, but not limited to, the financial sector, big tech and the military industry.

“These companies can be held responsible for being directed linked to, or contributing, or causing human rights impacts,” she said. “We’re not talking of human rights violations, we are talking of crimes.”

“Some of the companies have engaged in good faith, others have not,” Ms Albanese said.

Read more:
Israeli soldier describes arbitrary killing of civilians in Gaza
British surgeons on life in Gaza

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The companies she has named include American technology giant Palantir, which has issued a statement to Sky News.

It said it is “not true” that Palantir “is the (or a) developer of the ‘Gospel’ – the AI-assisted targeting software allegedly used by the IDF in Gaza, and that we are involved with the ‘Lavender’ database used by the IDF for targeting cross-referencing”.

“Both capabilities are independent of and pre-ate Palantir’s announced partnership with the Israeli Defence Ministry,” the statement added.

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US

Texas floods: At least 104 killed – as new images show scale of the destruction

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Texas floods: At least 104 killed - as new images show scale of the destruction

At least 104 people have died in the flash floods that have left a trail of destruction across Texas.

Kerr County Sheriff’s Office said the number of bodies found in the area had risen from 75 to 84 – including 56 adults and 28 children.

The have been seven fatalities in Travis County, six in Kendall County, four in Burnet County, two in Williamson County and one in Tom Green County.

Earlier, White House press secretary Karoline Leavitt warned that “the situation on the ground remains dangerous” and that there “could be additional public safety threats with additional incoming heavy rain”.

Latest updates – Texas floods

A view inside a cabin at Camp Mystic after the flooding. Pic: Ronaldo Schemidt/AFP via Getty Images
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A view inside a cabin at Camp Mystic after the flooding. Pic: Ronaldo Schemidt/AFP via Getty Images

The floods that first struck on Friday have wreaked havoc and left people in a state of grief – with 27 of the confirmed deaths having taken place at a girls’ summer camp in Kerr County.

Among those killed at Camp Mystic were Renee Smajstrla and Sarah Marsh, both eight, Eloise Peck and Lila Bonner, both nine, and the camp’s director Richard Eastland.

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A photo has now emerged showing the inside of the camp on Saturday after the waters hit.

At least 41 people are still missing in the state – including 10 girls from Camp Mystic.

Renee Smajstrla, 8, died in the flash floods at Camp Mystic, Texas. Pic: Family handout
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Renee Smajstrla, eight, died in the flash floods at Camp Mystic, Texas. Pic: Family handout

Sarah Marsh, 8, died in the flash floods at Camp Mystic, Texas. Pic: Family handout
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Sarah Marsh, eight, died in the flash floods at Camp Mystic, Texas. Pic: Family handout

In her news conference, Ms Leavitt criticised people who have claimed the Trump administration’s cuts to the National Weather Service (NWS) have played a role in the worsening the disaster.

It comes after Texas officials criticised the NWS by claiming it failed to warn the public about the impending danger.

Meanwhile, Senate Democratic Leader Chuck Schumer asked the Department of Commerce’s acting inspector general on Monday to probe whether staffing vacancies at the NWS’s San Antonio office contributed to “delays, gaps, or diminished accuracy” in forecasting the flooding.

The NWS did not immediately respond to a request for comment on Mr Schumer’s letter, but earlier defended its forecasting and emergency management.

Flooding near Kerville, Texas. Pic: US Coast Guard/AP
Image:
Flooding near Kerville, Texas. Pic: US Coast Guard/AP

Ms Leavitt has told reporters that claims Mr Trump was responsible for any issues related to the flash floods response were “depraved and despicable”.

“It is not [a political game], it is a national tragedy,” she said.

The press secretary also claimed, in relation to some NWS offices being reportedly understaffed, that one place actually had “too many people”.

“Any person who has deliberately lied about the facts around the catastrophic event, you should be deeply ashamed,” she said.

Rescuers at Camp Mystic along the Guadalupe River in Texas after a flash flood swept through the area. Pic: AP
Image:
Rescuers at Camp Mystic along the Guadalupe River in Texas after a flash flood swept through the area. Pic: AP

Members from Texas Game Wardens of the Law Enforcement Division works following flash flooding, in Kerrville, Texas.
Pic: Reuters
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Members from Texas Game Wardens of the Law Enforcement Division works following flash flooding, in Kerrville, Texas. Pic: Reuters

She also said that Mr Trump was going to visit Texas “later in the week”.

Previously, Mr Trump said it was likely he would visit on Friday.

Car is wedged in the ground following deadly floods in Texas
Image:
Car is wedged in the ground following deadly floods in Texas

White House press secretary Karoline Leavitt speaks with reporters in the James Brady Press Briefing Room at the White House, Monday, July 7, 2025, in Washington.
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Karoline Leavitt in the press briefing room

Texas Senator Ted Cruz spoke at a news conference and said: “Texas is grieving right now, the pain, the shock of what has transpired these last few days has broken the heart of our state.

“Those numbers [the number of dead] are continuing to go up… that’s every parent’s nightmare, every mum and dad.”

A view inside a cabin at Camp Mystic after the flooding. Pic: Ronaldo Schemidt/AFP via Getty Images
Image:
A view inside a cabin at Camp Mystic after the flooding. Pic: Ronaldo Schemidt/AFP via Getty Images

Damaged vehicles and debris are seen roped off near the banks of the Guadalupe River after flooding in Ingram, Texas. Pic: AP
Image:
Damaged vehicles and debris are seen roped off near the banks of the Guadalupe River after flooding in Ingram, Texas. Pic: AP

He said he had picked up his own daughter from a camp in the area last week.

Mr Cruz added: “You know what I’d do? What I did when this happened? Just go hug your kids.

“Because I’ve got to tell you, I hugged my girls with tears in my eyes.”

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Texas flooding: Aerial footage of rescues

Dalton Rice, the city manager of Kerrville in Kerr County, was asked whether evacuation warnings could have been issued earlier.

He said: “It’s very tough to make those calls because we also don’t want to cry wolf.

“You know, we want to make sure that we activated [it] at the right time.”

He added: “We had first responders getting swept away, responding to the first areas of rainfall. That’s how quick it happened.

“They were driving to these areas and one of them got swept off the road.”

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