House Speaker Kevin McCarthy told the GOP conference on Tuesday that he’s “nowhere near” reaching a debt ceiling agreement with President Joe Biden as the June 1 default deadline rapidly approaches.
Earlier this year, the national debt reached the established debt ceiling of $31.4 trillion, a statutory limit set by Congress to restrict government spending. Treasury Secretary Janet Yellen confirmed in a letter that unless the debt limit is promptly adjusted, the agency anticipates a potential default as early as the beginning of June.
Republicans aim to connect a temporary increase in the debt ceiling with spending caps, whereas Democrats express a preference for separate procedures for debt limit negotiations and budget reforms.
In a closed-door meeting, McCarthy asked fellow Republicans to “hang with me on the debt limit” since he and Biden are “nowhere near a deal yet” regarding spending reforms, according to comments obtained by Punchbowl News founder Jake Sherman.
“I told the president three things: no clean debt limit, no raising taxes, spend less money,” McCarthy told Republicans, according to Sherman, who added that McCarthy showed the caucus a video montage of various Democrats over the years refusing to negotiate over the debt limit. “They made a mistake to not negotiate. Let’s stay strong together.”
McCarthy has repeatedly pointed out that Biden refused to continue the discussions on the debt ceiling, which were initiated in early February, well ahead of the potential deadline. If the government defaults, it is highly likely to trigger a recession, as the federal government, which is a significant borrower of funds that global investors perceive as dependable, would fail to fulfill its obligations.
McCarthy’s remarks come just a day after a meeting with Biden regarding potential approaches to address the debt ceiling. The president had described the discussions as “productive” and emphasized the necessity of moving forward in good faith to reach a bipartisan agreement, according to a White House statement.
McCarthy noted in a press release, however, that the president “wasted months ignoring the crisis” and “risks bumbling into the first default in American history.”
“The House Freedom Caucus calls on Speaker McCarthy and Senate Republicans to use every leverage and tool at their disposal to ensure the Limit, Save, Grow Act is signed into law,” the group said in a statement. “There should be no further discussion until the Senate passes the legislation.”
