ANOTHER day ends with no debt limit deal: White House says Biden will not use 14th Amendment
The White House and Chairman Kevin McCarthy called off debt ceiling negotiations on Tuesday β eight days before a possible bankruptcy with no deal in sight.
White House negotiators Steve Ricchetti and Office of Management and Budget Director Shalanda Young spent two hours on Capitol Hill before leaving around 1:30 p.m.
And as the White House faces mounting pressure to invoke the 14th Amendment, Press Secretary Karine Jean-Pierre threw cold water at the idea.
“It’s not going to solve the current problem we have right now,” she told reporters.
Rep. James Clyburn, former Democratic whip and a close ally of Biden, said on MSNBC on Tuesday:
βThe 14th Amendment is still here and as President of the United States [Biden] has some authority to use it.β
The White House and Chairman Kevin McCarthy halted debt ceiling negotiations on Tuesday β eight days before a possible default with no deal in sight
His sharp suggestion comes after a growing wave of Democrats in the House and Senate are urging Biden to abandon negotiations all together and invoke the 14th Amendment, which says in part that the “validity” of the national debt ‘will not be’. interrogated.’
“I don’t think we’re getting one today,” McCarthy told reporters of a deal to raise the country’s borrowing limit.
Meanwhile, left and right dig deeper into their demands, urging leaders not to negotiate.
“I think there would be tremendous Democratic backlash within our caucus, especially among the progressives, but also on the streets,” said Rep. Pramila Jayapal, D-Wash., Chair of the Progressive Caucus, on President Biden potentially accepting spending cuts or job requirements for welfare programs.
“It is important that we do not back down from the very strong agenda that the president himself has led.”
Rep. Garret Graves, R-La., a chief negotiator for the House GOP, said of Jayapal’s remarks, “I’ve never met anyone in my life who says the government is working efficiently and we can’t find ways to cut funding.” Reduce. . I’ve never been, so I’m not sure what streets she’s talking about, but that’s fascinating.’
“There’s a significant gap between where we are and where they are financially,” said Rep. Garret Graves to reporters Tuesday night
Another negotiator β Patrick McHenry, chairman of the financial services industry, right β said he was confident in Yellen’s prediction that June 1 is the X date when the nation is likely to run out of money to pay its bills.
On the right, the House Freedom Caucus has urged McCarthy not to agree to a deal less conservative than the House-passed party-line debt ceiling bill, the Limit Save Grow Act.
βThe bill we passed is a good bill. I think we should actually move on,” said Rep. Chip Roy on CBS.
“What we’ll take is what we’ve passed,” Representative Scott Perry, chairman of the Freedom Caucus, told reporters.
Other far-right members of the GOP conference have expressed doubt that Treasury Sec. Janet Yellen’s warning that the nation could default on June 1 is true.
Another negotiator – Patrick McHenry, chairman of the financial services industry – said he was confident in Yellen’s forecast.
She is responsible for cash management. There’s a whole bureaucracy inside the Treasury. They don’t play games,” he said. “She’s a straight shooter.”
Negotiators are determined to find a maximum level of spending.
Democrats have offered to keep spending levels at 2023 levels in exchange for a two-year increase in the debt ceiling. They insist this amounts to a retrenchment, as 2023 levels will not be adjusted for inflation in 2024 β essentially a 5 percent cut.
Republicans want the spending level to be kept at 2022 levels, but insist it should be lower than it is now anyway.
The difference is about $130 billion.
Negotiators should also debate the length of a 1 percent spending cap going forward. Republicans had wanted to limit spending growth to 1 percent for 10 years, but the White House offered a year. Republicans cut their offer to six years.
βThere is a significant gap between where we are and where they are financially,β Graves told reporters Tuesday night.
Meanwhile, Senate Minority Leader Mitch McConnell tamed fears of default in his home state of Kentucky.
“Look, I think everyone needs to relax,” he said.
Of the back and forth confusion over whether any progress has been made, he said, “This isn’t that unusual.”
But time is running out β the House is scheduled for recess next week, June 1 is eight days away, and the GOP leadership still plans to give regular members three days to read whatever bill they come up with.
Republicans are still pushing for job requirements for programs like SNAP, TANF and Medicaid to be included in a final package. Democrats are very resistant to taking benefits away from anyone.
Graves, however, insists it’s about Biden’s deputies β Biden aide Steve Ricchetti and Office of Management and Budget Director Shalanda Young β who don’t know what cuts they’re allowed to agree to.
Graves equated bargaining with “someone buying a used car.” White House negotiators will say, βWell, I need to go talk to my manager. Oh sorry. The manager will not lower the price, but will throw in car mats.”
βI feel like we’ve been through a few of those iterations, which is inappropriate. We need strong negotiators in the room and I think that would be helpful.’