President Joe Biden announced on Saturday that discussions with Congress regarding raising the US government’s debt limit were progressing, with more information expected to surface within the next two days. The President is slated to meet with Republican House Speaker Kevin McCarthy and other congressional leaders early next week to resume negotiations after canceling a previously planned meeting on Friday to allow staff to continue deliberations.
Talks have centered around the $31.4 trillion debt ceiling, which must be raised to avoid a potentially catastrophic default. The Treasury Department has warned that the US could run out of money by June 1 if lawmakers don’t lift the debt ceiling. Biden’s aides and McCarthy have been exploring ways to limit federal spending in parallel with debt ceiling negotiations.
Bipartisan efforts to address the debt ceiling crisis
In an encounter with reporters at Joint Base Andrews, Biden expressed cautious optimism about the ongoing discussions: “I think they are moving along, hard to tell. We have not reached the crunch point yet.” Although acknowledging that “there’s a real discussion about some changes we all could make,” Biden conceded that a resolution has not yet been reached.
The President did not respond to questions regarding his upcoming meeting with Republican leadership but emphasized that more information would be available in the next two days. Congressional staff and administration officials have been discussing a potential agreement to raise the debt limit and enact new limits on federal spending. Possible spending cuts include permitting reform to spur energy production and rescinding unused COVID-19 aid money.
Despite some pushback from lawmakers on the proposed compromise, pressure is mounting on both sides to break the months-long stalemate. Treasury Secretary Janet Yellen has warned that without an agreement, the US could default on its debt for the first time in history as soon as June 1. This scenario could have devastating economic consequences and potentially plunge the global economy into a financial crisis.
When asked if a deal would be made before June 1, Biden smiled and said, “it has to be.” The President’s determination signals the situation’s urgency and the importance of bipartisan efforts to resolve the nation’s looming financial crisis.