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Debt ceiling negotiations appear to be going nowhere

by Jacob Fuller

Trey Paul, FISM News 

With Treasury Secretary Janet Yellen saying Monday she estimates the U.S. could stop being able to pay off its debt as soon as June 1, few in Washington seem to be optimistic about debt ceiling negotiations.

President Joe Biden is set to host Speaker Kevin McCarthy (R-Calif.) on Tuesday along with the rest of the congressional leadership to discuss raising the debt ceiling, but hours before the meeting, the White House sent out a memo outlining how a number of appropriations bills set to be marked up this week by Republicans would lead to some cuts in major government programs.

Director of the Office of Management and Budget, Shalanda Young, claims that cuts to discretionary spending are at the center of House Republicans’ demands when it comes to talks over raising the debt ceiling.

Last month, House Republicans took action to avoid a default crisis and passed legislation that called for spending cuts in exchange for raising the debt limit, something Speaker McCarthy noted on Twitter. “Maybe President Biden has a secret plan on the debt ceiling,” McCarthy tweeted.

The legislation would, among other things, limit federal spending, rescind all unobligated COVID relief money, target IRS spending, and block some student loan relief.

Young wrote the appropriations bills set to be released in the coming days “will give us a clear roadmap for how their draconian cuts will end up affecting the American people,” but several polls suggest most Americans seem to agree with House Republicans and don’t support the idea of raising the debt ceiling without spending cuts.

A Reuters/Ipsos poll shows that 51% of Americans feel the debt ceiling should not be raised without major spending cuts. The poll of 4,415 U.S. adults, which was conducted online, occurred between May 9 and May 15.

Speaker McCarthy said that he appreciates President Biden’s willingness to finally talk after 97 days, but isn’t optimistic about saving the country’s economy any time soon. “If you look at the timeline to pass something in the House and pass something in the Senate, you’ve got to have something done by this week, and we are nowhere near any of that,” McCarthy added.

Republican Congressman Andy Barr of Kentucky shared on social media that House Republicans are the only ones who have passed a reasonable solution to raise the debt ceiling. In a recent tweet, he wrote: “For over 100 days Joe Biden and Congressional Democrats have refused to offer a sensible solution to avoid defaulting on our debt. Every single House Democrat voted against raising the debt ceiling. House Republicans are the ONLY ones who have passed a reasonable solution to raise the debt ceiling and address our debt crisis.”

Meanwhile, Senate Democrats are arguing President Biden should not agree to the GOP’s spending cuts in exchange for raising the debt ceiling, and that he should extend the nation’s debt limit by making a move no previous president has. They’re pushing for President Biden to use the 14th Amendment to raise the debt ceiling and argue he has the constitutional authority to do so.

Biden said he is considering using the 14th Amendment and Senate Republican Leader Mitch McConnell responded to that threat by declaring on the Senate floor that “unconstitutionally acting without Congress” is “not an option.”

Republican Congressman Byron Donalds of Florida gave a warning about the debt ceiling on social media.

“The House GOP passed OUR debt ceiling plan weeks ago. If Biden continues to sit back with his hands in his pockets refusing to negotiate, then he is leading us straight into default and that’s a very sad thing to see. We must curtail spending and get back to pre-COVID spending levels,” Donalds posted.

US stock futures were all lower on Tuesday morning ahead of President Biden’s meeting with congressional leaders.

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