Republicans are preparing a set of conditions that Democrats must agree to before allowing the government's debt ceiling to be raised.
This is necessary to avoid a potential economic crisis.
The Republicans' demands will include spending cuts and form part of a package of reforms.
Democrats have been urged to agree to the terms by Republicans, but have yet to respond.
In their preparation for negotiations, Republicans are compiling a set of conditions that Democrats will have to meet in order to raise the US government's debt ceiling.
This is necessary to avoid a potential economic crisis.
While Democrats insist that they will not negotiate on the issue, no increase in the debt ceiling can happen without the support of Republicans.
House Budget Committee Chairman Jodey Arrington commented that Republicans are closing in on a "package of reforms" that the House of Representatives could pass with bipartisan support and earn President Joe Biden's signature.
"If we're going to negotiate, we're going to have to have something on paper that gets the support of at least 218 of our members," said Arrington, whose party controls the House by a narrow 222-222 margin.
In opposition to the Democrats, Republicans insist that they will not approve an increase in the debt ceiling without an accompanying agreement on spending cuts.
Biden has thus far maintained a firm stance, stating that Democrats will not negotiate on the matter.
However, with the fragile state of politics, the situation remains very much in flux.