Debt ceiling negotiators reconvened again Tuesday afternoon, but a breakthrough agreement remains stubbornly elusive.

House Speaker Kevin McCarthy (R-CA) warned that the two sides are "nowhere near a deal" as the country barrels toward the "X-date" when the government will run out of cash to meet all its bills. Several key sticking points stand in the way of averting fiscal turmoil.

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Here are the main obstacles to an agreement.

Spending caps

At the crux of the dispute is how to approach spending caps — both in terms of length and duration of any expenditure freeze.

McCarthy has long insisted an increase in the nation's borrowing authority be coupled with spending cuts. The White House demanded a stand-alone bill, with no reductions in federal expenditures attached, but is sitting down for discussions about spending limits nonetheless.

Republicans have publicly sought to cap spending growth from fiscal 2022 levels to about 1% over the next 10 years. The White House reportedly wants a two-year time frame. Some consider those spending growth reductions could be considered a cut because the increases wouldn't keep pace with inflation.

House Minority Leader Hakeem Jeffries (D-NY) disclosed that Democrats offered to freeze spending at the "current fiscal year levels" but noted that the "extreme" Republicans spurned that offer.

"That's been rejected because apparently, House Republicans have said we will accept nothing short of their extreme Default on America Act," Jeffries added.

Last week, the House Freedom Caucus, a conservative bloc, called on debt limit deliberations to be suspended "until the Senate passes" the GOP's Limit, Save, Grow Act, which Democrats rejected as a non-starter.

Further complicating the matter is military spending, which McCarthy told President Joe Biden is "off the table" for cutting, NBC reported. That stipulation narrows the window for what can be cut.

Length of debt limit increase

In their Limit, Save, Grow Act proposal, Republicans proposed jacking up the debt ceiling by $1.5 trillion or until March 24, 2024 — whichever comes first. Democrats appear to want a longer time frame to avoid another bout of brinkmanship during an election year.

There's been little chatter about this particular sticking point specifically, but it will likely be a key pressure point in the broader tug-of-war over how much to slash spending. One thing many rank-and-file Republicans have made clear is that there's little appetite for a short-term increase to buy more time for a deal.

Work requirements

One of the changes GOP leadership made to secure passage of the Limit, Save, Grow Act was to bolster work requirement provisions for social programs. This was needed to win over a handful of Republicans that initially opposed it.

“I voted for tougher aid programs that’s in the law now, but for Medicaid, it's a different story. And so I’m waiting to hear what their exact proposal is,” Biden told reporters last week.

Despite Biden sounding open to strengthening those requirements, many progressives, such as Reps. Ro Khanna (D-CA) and Alexandria Ocasio-Cortez (D-NY), have balked at the suggestion.

Yet Republicans appear keen on preserving many of those more stringent work requirements in any debt limit deal.

"I don't think it's right to take from a hard-working taxpayer, and go borrow from China to pay an able-bodied person with no dependents to sit on a couch," McCarthy said.

Tax revenue/IRS funding

Although less discussed than the spending skirmishes, the two sides also appear to be at odds over tax revenue.

"Part of what I've been arguing from the beginning is the need to consider the tax structure as well as cutting spending," Biden recently told reporters.

His team has reportedly floated a few options on that front to raise taxes on higher earners, such as closing the carried interest loophole. While Republicans' plan could raise revenue by curbing green energy credits from the Democrats' marquee Inflation Reduction Act, McCarthy has ruled out any tax hikes.

"I've been very clear with the president since Day 1: We're not raising taxes. The problem is Washington spends too much," McCarthy tweeted.

Treasury Secretary Janet Yellen also sounded the alarms Sunday that GOP plans to cut IRS funding is ”something that greatly concerns me.

“Equipping the IRS with the funding they need to audit high-income individuals and corporations — that’s something that doesn’t cost money,” she said. “It nets money, substantially, for the federal government.”

Grab bag issues

Smelling potential leverage to elevate prized reforms, members of both parties have publicly pitched the prospect of incorporating other proposals in a bipartisan agreement. Many of these peripheral issues don't appear to be the primary hiccup in negotiations, but have circulated nonetheless.

For instance, Rep. Garret Graves (R-LA), a GOP negotiator, suggested that border discussions came up during negotiations.

There have also been murmurs of permitting reform being part of a deal, something Senate Majority Leader Chuck Schumer (D-NY) confirmed. However, nearly 80 House Democrats penned a letter voicing concerns about that prospect.

Republicans initially scrapped Biden's student loan forgiveness plan in their proposal, but that appears to be another nonstarter for Democrats.

Another issue on the negotiating table is reforming pharmacy benefit managers, the middlemen who help set drug prices. Progressives are also eager to bestow Medicare broader powers to negotiate drug prices, but that appears to be a no-go.

From the sidelines, Sen. Josh Hawley (R-MO) pitched adding increased tariffs on China into the mix, but that also appears to have gained little traction.

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"We are going to raise the debt ceiling," McCarthy told reporters when asked about what concessions the GOP plans to offer.

Many Democrats have warmed up to using the 14 Amendment as a way of upending the debt limit and averting a default as the threat looms. But the Biden administration appears hesitant, given the legal uncertainty.

McCarthy met with Biden in person Monday, after the president cut his trip abroad short in order to address the deadlock. There does appear to be some agreement on rescinding some of the unused COVID-19 funds. Negotiators are expected to continue filtering through their differences this week.