UNITED STATES NEWS

Biden, congressional leaders likely to meet Tuesday for talks on raising the debt limit

May 14, 2023, 3:22 PM

WASHINGTON (AP) — debt limit, the president said Sunday, as the nation continues to edge closer to its legal borrowing authority with no agreement in sight.

The meeting was initially supposed to be Friday, but was abruptly postponed so staff-level talks could continue before Biden and the four congressional leaders huddled for a second time. Administration and congressional officials said Sunday that a meeting has not been finalized.

Biden said he was optimistic he could reach a deal with the Republicans.

“I remain optimistic because I’m a congenital optimist,” Biden told reporters while out for a bike ride in Rehoboth Beach, Delaware. “But I really think there’s a desire on their part as well as ours to reach an agreement. I think we’ll be able to do it.”

Aides reported some progress in the discussions that carried through the weekend.

“The staff is very engaged. I would characterize the engagement as serious, as constructive,” Lael Brainard, head of the White House’s National Economic Council, said on CBS’ “Face the Nation.”

But there was little indication that either the White House or House Republicans had budged from their initial positions. Biden has called on lawmakers to lift the debt limit without preconditions, warning that the nation’s borrowing authority should not be used to impose deep spending cuts and other conservative policy demands.

“We’ve not reached the crunch point yet,” Biden told reporters Saturday before flying to his beach home for the weekend. “There’s real discussion about some changes we all could make. We’re not there yet.”

Breaching the debt limit would be unprecedented and could trigger a financial catastrophe.

“Our expectation is that Congress will act to avert default in a timely manner,” Brainard said.

Biden and the leaders — House Speaker Kevin McCarthy, R-Calif., House Democratic leader Hakeem Jeffries of New York, Senate Majority Leader Chuck Schumer of New York and Senate Republican leader Mitch McConnell of Kentucky — ended their first meeting last Tuesday without a breakthrough.

The president described that Oval Office session as “productive” even though McCarthy said later he “didn’t see any new movement” toward resolving the stalemate.

McCarthy has insisted on using the threat of defaulting on the nation’s debts to wrangle budget changes, arguing that the federal government can’t continue to spend money at the pace it is now. The national debt now stands at $31.4 trillion.

An increase in the debt limit would not authorize new federal spending. It would only allow for borrowing to pay for what Congress has already approved.

The Treasury Department has said the government could exhaust the ability to pay its bills as early as June 1. The nonpartisan Congressional Budget Office gave a similar warning Friday, saying there was a “significant risk” of default sometime in the first two weeks of next month.

But federal estimates still remain in flux.

The CBO noted Friday that if the cash flow at the Treasury and the “extraordinary measures” that the department is now using can continue to pay for bills through June 15, the government can probably finance its operations through the end of July. That’s because the expected tax revenues that will come in mid-June and other measures will give the federal government enough cash for at least a few more weeks.

“Ultimately the stakes are, the United States has never defaulted on its debt,” Wally Adeyemo, the deputy treasury secretary, said on CNN’s “State of the Union” on Sunday. “And we can’t.”

And Rep. Michael McCaul, R-Texas, told ABC’s “This Week”: “I think defaulting is not the right path to go down. So I am an eternal optimist.”

He added, “this is always a game we play, every Congress, you know, in daring each other to jump off the cliff. It’s a dangerous game.”

United States News

Associated Press

Tornado kills multiple people in Iowa as powerful storms again tear through Midwest

GREENFIELD, Iowa (AP) — Officials said multiple people were killed Tuesday when a tornado ripped through a small town in Iowa, decimating homes and damaging businesses. The town of Greenfield’s hospital was among the buildings damaged — which meant that at least a dozen people hurt had to be taken to hospitals elsewhere, according to […]

33 minutes ago

Former President Donald Trump sits in a courtroom next to his lawyer Todd Blanche before the start ...

Associated Press

Trump hush money trial enters new phase after defense rests without testimony from former president

Donald Trump's hush money trial is now closer to the moment when the jury will begin deciding the former president's fate.

4 hours ago

Associated Press

Rangers recover the body of a Japanese climber who died on North America’s tallest peak

ANCHORAGE, Alaska (AP) — Rangers have recovered the body of a Japanese man who died after an apparent fall while climbing North America’s tallest peak, authorities said Tuesday. Denali National Park and Preserve identified the climber as T. Hagiwara, from Sapporo, Hokkaido, Japan. He was identified by his first initial in keeping with his family’s […]

4 hours ago

Associated Press

Detroit could be without Black representation in Congress again with top candidate off the ballot

LANSING, Mich. (AP) — A Detroit Democrat will not appear on the ballot after building significant support within the party in his attempt to unseat U.S. Rep. Shri Thanedar in Michigan’s August primary, after election officials determined that he had not submitted enough valid signatures. Wayne County Clerk Cathy Garrett’s ruling on Tuesday to keep […]

5 hours ago

DeAnn Kilgore grappled with the unexpected letter from her husband's killer, Michael Moore. Despite...

SuElen Rivera

Letters lead to meeting killer, life-changing moment

DeAnn Kilgore grappled with the unexpected letter from her husband's killer, Michael Moore. Despite initial reluctance, she read it, prompting a profound journey of forgiveness and spiritual healing for herself and her family.

5 hours ago

Follow @ktar923...

Sponsored Content by Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.

Sponsored Articles

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

Biden, congressional leaders likely to meet Tuesday for talks on raising the debt limit