“Securing a bipartisan path forward to raise the debt ceiling could not be more urgent,” said Josh Bolten, the head of the Business Roundtable, a group that represents CEOs. While the financial markets have started to show some jitters, the business community has thus far largely avoided backing either side in the showdown and instead called for a deal to be struck. The Democratic-aligned group House Majority Forward announced a $1 million campaign Tuesday amplifying such cuts, while the House Republicans’ campaign committee countered with its own effort portraying Democrats as “addicted to spending.”īiden added the debt limit should be raised for “more than a year, so that we can move things along.” The House GOP bill raised the possibility of another showdown over the government’s borrowing authority in the heat of a presidential election next year. Mike Lawler.īecause the House Republican bill does not specifically spell out which federal programs would be cut, Democrats have gone on offense warning of steep hits to popular programs. His Wednesday visit will be to a congressional district won by Biden in 2020 but now represented by a Republican, Rep. Aides believe that message both strengthens his position in talks with the GOP and boosts his nascent 2024 reelection effort. It’s part of a broader campaign by Biden to try to paint the Republican cuts as draconian. Referring to the House bill, McCarthy said, “We both said default is not an option - but only one of us took action.”Īlready looking past the meeting, Biden on Wednesday is to go to Westchester County, New York, where he plans to deliver a speech on how proposed spending cuts approved by House Republicans could hurt teachers, older adults needing food aid and veterans seeking health care. Republicans hope that bill would achieve $4.5 trillion in deficit savings through cuts in spending, eliminating tax breaks for investing in clean energy, and reversing Biden’s plans to reduce the burdens of student loan debt. But that legislation has no chance in the Democratic Senate and the White House has threatened to veto it. Last month, House Republicans passed a sweeping bill to slash spending, an opening offer in negotiations. Default, officials say, threatens to disrupt Social Security payments to retirees, destabilize global markets and tilt the nation into a potentially debilitating recession. The chasm between these opposite postures had fomented uncertainty that is roiling financial markets and threatens to turn into a tidal wave that swamps the country’s economy. White House lawyers will pursue the idea further, he added, but “the problem is it would have to be litigated.”īefore the White House meeting, both McCarthy and White House press secretary Karine Jean-Pierre insisted it would be simple to avert default - if only the other side capitulated. Biden, on the other hand, reinforced his opposition to allowing the country’s full faith and credit to be held “hostage” to negotiations - while affirming his willingness to hold talks on the budget only after default is no longer a threat. Republicans came to the White House hoping to negotiate sweeping cuts to federal spending in exchange for allowing new borrowing to avoid default. That failure would send the country into default with wide-reaching economic impact at home and around the world. The government is bumping up against its legal limit for borrowing and will not be able to pay all of its bills as soon as June 1 if Congress doesn’t agree to raise the debt ceiling. Biden and the congressional leaders are to meet again Friday.Īfter the hourlong discussion in the Oval Office, Biden said he was “absolutely certain” that the country could avert a default, declaring that failure to meet America’s obligations “is not an option.” Lawmakers and their staffs were to continue discussions on the annual federal budget at Biden’s encouragement. Speaking at the White House, Biden described the talks as “productive” even though House Speaker Kevin McCarthy said after the high-stakes Oval Office meeting that he “didn’t see any new movement” toward resolving the stalemate. WASHINGTON (AP) - President Joe Biden and congressional leaders confronted each other on the debt limit impasse Tuesday, ending their meeting with no breakthrough but agreeing to meet again this week to try to avert the looming risk of an unprecedented government default.
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