Biden hopeful for debt ceiling agreement, justifies Asia visit.

President Biden Optimistic About Reaching Agreement on Debt Ceiling

President Joe Biden expressed optimism that the United States won’t default on its financial obligations and that an agreement on spending priorities will be reached in the coming days, ahead of his departure on a trip to strengthen U.S. relationships with allies.

“America is not a deadbeat nation. We pay our bills. The nation has never defaulted on its debt, and it never will. And we’re going to continue these discussions with congressional leaders in the coming days until we reach an agreement,” the president told reporters at the White House on May 17.

Assurance for the Future

The remarks appear intended to offer assurance that the monthslong standoff between the president and House Speaker Kevin McCarthy (R-Calif.) over raising the nation’s $31.4 trillion debt ceiling would soon be resolved, despite his absence from the country for four days.

Biden will attend the G-7 Summit in Hiroshima, Japan, along with leaders from France, the UK, Germany, Japan, Italy, and Canada. The trip will include meetings with the leaders of India and Australia, although side trips to Australia and Papua New Guinea were postponed due to the debt negotiations.

Productive Meeting

The president met with McCarthy on May 16 to discuss the debt ceiling, spending caps, and other provisions proposed by Republicans. Vice President Kamala Harris, Senate Majority Leader Chuck Schumer (D-N.Y.), Senate Minority Leader Mitch McConnell (R-Ky.), and House Minority Leader Hakeem Jeffries (D-N.Y.) also attended. It was the second such meeting in eight days.

“We had a productive meeting yesterday and—with all four leaders of the Congress. It was civil and respectful,” Biden said. “And everyone came to the meeting, I think, in good faith. I’m confident that we’ll get the agreement on the budget, that America will not default.”

The Crux of the Problem

The president and the speaker had been in a standoff over raising the nation’s $31.4 trillion debt ceiling since January.

The country usually operates on a deficit budget, so borrowing is needed each year to meet the spending obligations legislated by Congress. The Treasury will be unable to stay under the limit after about June 1, according to Secretary Janet Yellen, meaning that the government will no longer be able to meet its financial obligations if the debt limit isn’t raised.

Biden has insisted that the debt ceiling must be raised without pre-conditions to preserve the full faith and credit of the United States, a position he still tries to maintain while engaging in talks about both subjects.

Republican Opposition

Republicans have consistently insisted that the two items must be linked. McCarthy has said that there will be no “clean debt limit,” meaning an increase without some agreement on spending limitations.

House Republicans approved the Limit, Save, Grow Act in April, which would raise the debt ceiling by $1.5 trillion, which experts say would carry the government through March 2024.

The proposal would also:

• Lower discretionary spending to the 2022 level
• Cap spending growth at 1 percent annually for a decade
• Strengthen work requirements for some recipients of federal assistance
• Claw back unspent COVID-19 relief funds from the states
• Loosen regulations on oil and gas drilling

A number of Senate Republicans publicly offered support for the Limit, Save, Grow Act at a bicameral press conference at the U.S. Capitol minutes after the president finished speaking.

“We won’t support bringing debate to a close on any debt ceiling increase that does not contain substantive spending and budgetary reforms,” Sen. Mike Lee (R-Utah) said.