Biden deems debt ceiling talks with Congress productive and assures no default.

President Biden Meets with Congressional Leaders to Avoid Default

President Joe Biden met with congressional leaders on Tuesday to discuss the debt ceiling, which has caused a three-month deadlock between the White House and Congress. The nation’s financial obligations are at risk of default if a resolution is not reached.

Productive Meeting

Following the meeting with House Speaker Kevin McCarthy and other congressional leaders, Biden told reporters that the meeting was “productive.” He assured the public that he would do everything in his power to prevent the United States from defaulting on its debt obligation.

“I made it clear during our meeting that default is not an option,” Biden said. “I told congressional leaders that I’m prepared to begin a separate discussion about my budget and spending priorities, but not under the threat of default.”

The President also stated that both sides agreed to continue discussions and would meet again on Friday. Until then, staff from both sides will meet daily to discuss progress.

Debt Limit and GOP Proposal

The current limit on federal borrowing in the United States is $31.4 trillion. According to Treasury Secretary Janet Yellen, the nation could default on its debt as soon as early June if the debt limit is not lifted.

House Republicans passed the “Limit, Save, Grow Act” in April, which would cap federal spending for fiscal year 2024 at 2022 levels to help offset raising the debt ceiling by $1.5 trillion, or through March 2024. However, the White House dismissed the GOP proposal, accusing House Republicans of “manufacturing a crisis” and failing to do their job.

House Speaker Kevin McCarthy told reporters outside the White House after the meeting that “everybody in this meeting reiterated the positions they were at.” He expressed hope that the two sides might find areas of common ground and suggested that the House bill could help eliminate waste and grow the economy.

Short-Term Extension and Unilateral Action

Biden did not rule out a short-term extension of the debt ceiling but stated that he would not approve massive spending cuts. He also told reporters that there has been internal White House debate on whether unilateral action, such as invoking the 14th Amendment, is possible to resolve the debt standoff.

Section 4 of the 14th Amendment states, “The validity of the public debt of the United States, authorized by law … shall not be questioned.”

The President accused McCarthy of proposing “a very different way forward” and expressed uncertainty about the Republican plan to cut spending.

Despite the challenges, both sides remain committed to finding a solution to avoid default and ensure the nation’s financial stability.