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A2 UP FRONT
Tuesday 9 May 2023

Debt options abound, but can Biden, McCarthy strike a deal?

Continued from Front Caucus and other con-
servatives who make up
“It’s Congress’ constitution- his slim majority, and who
al duty to act to prevent can threaten to oust the
default,” White House Press speaker if he negotiates a
Secretary Karine Jean- deal they are unwilling to
Pierre said Monday. “That’s accept.
what the president is going While Biden had a will-
to be very clear about.” ing partner in past budget
At Tuesday’s first meeting, showdowns negotiating
it’s extremely unlikely there with McConnell, the Senate
will be any quick resolution. Republican leader is keep-
Biden and the big four con- ing a lower profile enabling
gressional leaders of the McCarthy to take the lead.
House and Senate will con- But the threat hanging over
vene at the White House McCarthy from his far-right
with neither side yet signal- flank could leave him un-
ing a willingness to budge willing or unable to strike a
off its opening position. compromise with Biden.
Biden wants Congress to Congress has been known
simply raise the debt limit to push this issue to the
without any strings at- brink, but it has also proven
tached, while Republicans its ability to buy time, by
led by McCarthy are insist- President Joe Biden talks with House Speaker Kevin McCarthy, R-Calif., as he departs the Capitol voting for stopgap mea-
ing on budget cuts in ex- following the annual St. Patrick's Day gathering, in Washington, March 17, 2023. sures to allow negotiations
change for any votes to al- Associated Press to continue.
low more borrowing to pay that otherwise would not the debt ceiling without is available to us right now.” In an earlier debt ceiling
the nation’s bills. be likely to become law. substantive spending and Time is short for any deal. showdown a decade ago,
More likely, Democratic Republicans have put budget reforms.” Treasury Secretary Janet Congress agreed to set
president Biden and Re- down their opening bid — In a letter from Sen. Mike Yellen has said that come up a “super committee”
publican House speaker a sweeping House-passed Lee, R-Utah, and signed by June 1, there may simply tasked with coming up with
McCarthy will at least be proposal that would slash Senate Republican leader not be enough cash on bipartisan spending reduc-
able to set aside their dif- $4.8 trillion off the federal Mitch McConnell, the 43 hand to meet all of the tions or facing automatic
ferences enough to launch budget over a decade GOP senators said they are nation’s obligations. She cuts — an idea that has
a process for negotiations by rolling back spending “united behind the House noted the U.S. has never been mentioned in anoth-
that could begin to form to fiscal 2022 levels and Republican conference in defaulted on its debt. er form this time.
the contours of a deal to capping future spending support of spending cuts “Every option is a bad op- It all means that while June
avert a true debt ceiling increases at 1% a year, re- and structural budget re- tion,” Yellen said Monday 1 looms as a serious dead-
crisis. sulting in steep cuts to pro- form as a starting point for on CNBC. line, it may end up being
But with tensions high and grams and services. negotiations on the debt The House and Senate ar- just the first of several to
the outcome uncertain, The Republicans refuse to ceiling.” rive back at work Tuesday, come — a level of fiscal un-
some lawmakers are con- simply raise the debt limit Biden and Democrats have but they are in session to- certainty that some experts
sidering unprecedented on its own, and are de- also dug in, refusing to de- gether just eight days be- have warned could rock
proposals, even one that manding budget cuts and bate over the debt ceil- fore the Senate breaks for the economy.
would allow Biden to by- other party priorities. The ing — though they have the Memorial Day recess To stave off a crisis, House
pass Congress, invoking his House Republican-passed opened the door to ne- the week of May 22 with Democrats have pushed
responsibilities under the bill would drop millions of gotiations over spending the House set to recess the forward a process that
14th Amendment to sim- Americans from health levels as part of the regular following week. would force a vote on a
ply raise the nation’s debt care, food stamps and budget process. Both Biden and McCarthy clean debt ceiling increase
limit on his own. That would cash assistance programs “We have to avoid de- have insisted they will not they prefer. But it’s a cum-
be certain to face a court by imposing additional fault, period. Full stop,” the allow the country to de- bersome procedure that
challenge. work requirements that House Democratic leader fault on its obligations. would be a longshot in the
Though the endgame is many would be unable to Hakeem Jeffries said over What’s different about this Senate, where Democrats
uncertain, the political ter- meet. And it would undo the weekend. round of talks is that it’s be- have only a slim majority
rain is familiar for the White much of Biden’s climate “We, of course, are open ing led by McCarthy, de- and need Republican sup-
House and Congress. The change agenda. to having a discussion buting after his tumultuous port to advance most bills.
once routine vote to raise Senate Republicans are about what type of invest- battle to become House Asked about invoking the
the debt ceiling has in- backing up their House Re- ments, what type of spend- speaker. 14th Amendment proposal,
creasingly been wielded as publican colleagues, an- ing, what type of revenues To win the gavel, McCarthy Biden said in an interview
powerful political leverage nouncing they will not ad- are appropriate,” Jeffries made steep concessions Friday that he’s not there
to extract policy priorities vance “any bill that raises said. “That’s a process that to the hard right Freedom yet.q