Lately Washington has focused on fighting battles over gun control and immigration, while the budget crisis has loomed over all of it. President Barack Obama has used the diversion to quietly attempt to make a deal with Senate Republicans that will solve Washington's spending problems.
For two years, the congressional Republicans and the Obama administration have been at odds on budgetary issues. By failing to take any action the economy has stagnated. Both Democrats and Republicans have become firmly entrenched on their sides with the former refusing to cut Medicare and Social Security, while the latter, will not raise taxes.
Last week White House chief of staff Denis McDonough met with more than a dozen Republican senators in an effort to find some sort of middle ground that will allow for a compromise according to Bloomberg.
Former White House advisor David Plouffe thinks that the meetings should be treated with tempered enthusiasm.
"The odds are not exceedingly high," Plouffe said when asked about the prospects of a deal, although the discussions do have "a firm heartbeat again."
Part of the reason that Obama may be attempting to strike a deal now is because by mid May another battle over the debt ceiling may take place.
According to Bloomberg house Republicans are considering tying Medicare cuts directly to the debt limit in order to attempt to avoid raising taxes. Part of the strategy will be to do so as soon as possible in order to put pressure on the White House.
"We're starting very early and making it clear that unless the president wants another fiscal cliff fiasco we are determined to avoid that," Rep. Kevin Brady, R-Tex, said.
Plouffe told Bloomberg TV that the likelihood of Republicans actually tying Medicare cuts to the debt limit is very low since it would not put any pressure on the White House with the American public.
"I couldn't think of a worse political position than, 'We would tank the global economy unless you allow us to cut Medicare too deeply," Plouffe said.