McCarthy predicts swift passage of debt ceiling deal with Biden agreement.

Congress to Approve Debt Ceiling Deal with Agreement from President and Speaker, Says McCarthy

Overview

House Speaker Kevin McCarthy (R-Calif.) has predicted that Congress will approve a deal on the debt ceiling if the president and the speaker of the House are able to forge an agreement. McCarthy and President Joe Biden planned to meet on the issue later that day.

Agreement with President

McCarthy believes that the majority of Republicans will favor the agreement he hopes to make with Biden. Eleven senators, led by Sen. Bernie Sanders (I-Vt.), have urged the president to invoke the 14th Amendment to avoid either defaulting on the debt or accepting severe spending cuts demanded by Republicans. McCarthy brushed off the possibility, saying simply, “That doesn’t work.”

Negotiations with Biden

Biden and McCarthy have been in negotiations about raising the nation’s $31.4 trillion debt limit since early May, about two weeks after the House passed the Limit, Save, Grow Act. The bill is the Republican plan for raising the debt limit through March 2024 and would limit federal discretionary spending, tighten work requirements for some beneficiaries of Medicaid and the Supplemental Nutrition Assistance Program, claw back unspent COVID-19 relief funds, and loosen permitting requirements on drilling for oil and gas.

Raising the Debt Limit

Biden continues to maintain that he is negotiating only on the provisions of the Republican plan and not on raising the debt limit itself, which he sees as the responsibility of Congress. McCarthy has made it clear that Congress won’t raise the debt limit without some agreement. House Financial Services Committee Chair Patrick McHenry (R-N.C.) gave an even shorter reply when asked about invoking the 14th Amendment: “Absurd.”