The first big debt limit talks since Feb. 1 are taking place Tuesday between President Biden and the top four congressional leaders, including House Speaker Kevin McCarthy (R-Calif.), with whom Biden has most publicly and strongly feuded on the topic.
Biden called the meeting shortly after Treasury Secretary Janet Yellen said last week that the U.S. could default on its debts as soon as June 1 if the debt ceiling isn’t raised.
McCarthy wants spending cuts tied to a debt limit increase, and the House GOP recently passed a bill to that effect. Forty-three Senate Republicans said over the weekend they wouldn’t support raising the debt ceiling without spending reforms.
The crux of the conflict, as distilled by The Hill’s Mychael Schnell and Mike Lillis:
Democrats and Biden have said they are willing to discuss deficit spending as part of the annual appropriations process but will not negotiate over the debt limit — which they say would be holding it “hostage.” If Republicans agree to hash out spending separately from the debt limit, however, they lose the key to their leverage: the risk of default.
Neither side has shown signs of budging. Tuesday’s meeting will set the tone for the ultimate outcome, whether it be a deal, a short-term fix, a long-shot workaround or an unprecedented default.
Shortly before Tuesday’s meeting, McCarthy panned the idea of a short-term fix, telling reporters, “We shouldn’t kick the vote.” That’s a sentiment Democrats have expressed as well.
Some things to watch for coming out of Tuesday’s talk: Is there a tone shift from either party (or both)? Do their post-meeting statements emphasize themes like cooperation and coming together? Do they reiterate criticisms and dig their heels in further?
Catch up with five potential outcomes of the debt ceiling battle
And check out a timeline of the debt limit debate here
