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Congress And The White House Have Yet To Come An Agreement Prior To A Default

Biden and Congressional aides currently in negotiations while the President is currently attending the G-7 as a recession looms.

Congress and the White House have yet to come to an agreement over the debt ceiling before the U.S. hit a default on June 1.

House Speaker Kevin McCarthy has been throwing shade at President Joe Biden for days over U.S. debt, and what to do about it.

Speaker of the House Kevin McCarthy (R-CA) (L) and Senate Minority Leader Mitch McConnell (R-KY) talk to reporters outside the West Wing after meeting with U.S. President Joe Biden and Vice President Kamala Harris about raising the debt limit at the White House on May 16, 2023, in Washington, DC. The Democratic and Republican leaders were meeting to strike a deal on raising the debt limit and avoid a default by the federal government. CHIP SOMODEVILLA/BENZINGA

President Biden is attending a G-7 Summit in Japan with other leaders as he will cut his overseas trip short as he continues to negotiate with the House Speaker.

Vice President Kamala Harris convened in a call with elected officials and the administration’s allies as she warns of the consequences of a debt default.

“We just need you, the leaders on this call, to do what you always do and make sure your voices are heard,” Harris said on the call. 

He has stepped up her role in negotiations over the debt as Biden is away from Washington.

After all his vitriol, the California Republican said he can “see now where a deal can come together,” touting that the “right people” are in the room discussing it. The comment opened McCarthy up for plenty of mockery on Twitter.

McCarthy told reporters Thursday at the Capitol that “we’re not there” regarding a debt ceiling resolution. “But I see the path,” he added. “I just believe where we were a week ago and where we are today is a much better place because we’ve got the right people in the room discussing it in a very professional manner with all the knowledge and all the background from all the different leaders.”

The House Speaker negotiate for work requirements for public assistance programs that included 20 hours per week including the Supplemental Nutritional Assistance Program, the food stamps program.

McCarthy indicated that negotiators on the federal debt limit may reach an agreement as soon as this weekend.

“Where we were a week ago and where we are today is a much better place because we’ve got the right people in the room discussing it in a very professional manner with all the knowledge and all the background from all the different leaders and what they want,” McCarthy said.

Who are the negotiators? According to CNN:

  • Longtime Biden aide and counselor Steve Ricchetti
  • Office of Management and Budget Director Shalanda Young (former staff director of the House Appropriations Committee)
  • Legislative Affairs Director Louisa Terrell
  • Congressman Garret Graves (R- La.)

Biden has indicated that he’d be open to discussions with McCarthy if he had a plan.

Now, it appears, Graves has been appointed to hash out that plan. The GOP demands are said to be limiting growth in government spending to 1% a year and blocking Biden’s student loan forgiveness program. McCarthy also wishes to cut funding for the Internal Revenue Service, impose strict requirements for Medicaid, and stymie Biden’s attempts to create a low-carbon economy to offset climate change.

Treasury Secretary Janet Yellen says June 1 is the deadline. Otherwise, the U.S. government might be unable to pay its obligations and government jobs would be in jeopardy, along with monthly payments to millions of Social Security beneficiaries. 

Also, if the standoff continues, that could exacerbate a recession. Economists expect a recession in the second half of 2023 regardless of the debt ceiling outcome.

If the players involved come up with an agreement, McCarthy’s chamber will pencil in a time to consider the deal by next week, per Bloomberg News.

Produced in association with Benzinga

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