GOP and Biden can find common ground despite philosophical disagreements on debt ceiling, says McCarthy.

Republicans and Biden Seek Common Ground on Debt Ceiling

Can Philosophical Disagreements Be Overcome?

Speaker of the House Kevin McCarthy (R-Calif.) believes that Republicans and President Joe Biden can find “common ground” on the debt ceiling, despite lingering “philosophical” disagreements.

McCarthy and Biden reportedly discussed the matter again as Biden returned home on Air Force One from the G-7 Summit in Hiroshima, Japan.

During a press conference at the U.S. Capitol, McCarthy told reporters that the call was “productive” and that the discussion would continue on the evening of May 21.

“I think we can solve some of these problems if he understands what we’re looking at,” McCarthy said of the president. “But I’ve been very clear to him from the very beginning. We have to spend less money than we spent last year.”

Despite this optimism, McCarthy admitted that “there’s no agreement on anything.”

Biden Floats Unilateral Action

On the same day, Biden again floated an idea that has long circulated among Democrats: that the president could use a clause in the 14th Amendment to unilaterally raise the debt ceiling without congressional authorization.

Biden said the White House was looking into the legality and practicality of the move, indicating that he still isn’t convinced that a deal can be reached.

During his May 21 press conference, Biden accused Republicans of “extreme positions” and said, “It’s time for Republicans to accept that there is no deal to be made solely, solely, on their partisan terms.”

Leaders Insist United States Won’t Default

Every leader involved in the negotiations has insisted that the United States won’t default.

For months, Republicans and Democrats have been gridlocked over the debt ceiling, which is the maximum amount of money that the U.S. Treasury can borrow. An increase of the debt ceiling requires approval from both chambers of Congress. Without a debt ceiling increase, the United States will default for the first time in history, an outcome that would have catastrophic effects on the value of the dollar.

Republicans under McCarthy’s leadership have demanded spending cuts in order to agree to a debt limit increase, citing the need to get the U.S. deficit and national debt under control.

Summary

Despite philosophical disagreements, Republicans and President Biden are continuing to discuss the debt ceiling. Biden has floated the idea of using a clause in the 14th Amendment to unilaterally raise the debt ceiling without congressional authorization. Every leader involved in the negotiations has insisted that the United States won’t default. Republicans under McCarthy’s leadership have demanded spending cuts in order to agree to a debt limit increase.