Biden and McCarthy under pressure to compromise in debt limit talks.

Debt Ceiling Negotiations: Biden Under Pressure to Bend

As President Joe Biden prepares to meet with House Speaker Kevin McCarthy (R-Calif.) on May 9 to resume their debt ceiling negotiations, the pressure for the president to bend on the issue is on the rise. The meeting will also involve Senate Majority Leader Chuck Schumer (D-N.Y.), Senate Minority Leader Mitch McConnell (R-Ky.), and House Minority Leader Hakeem Jeffries (D-N.Y.).

Disappointing Poll Numbers and a United Republican Front

Biden faces disappointing poll numbers and a united Republican front. According to a Washington Post-ABC News poll published on May 7, Biden’s disapproval rating has climbed to 56 percent—a three-point increase since Feb. 1, which was both the first and last date he met with McCarthy to discuss the debt limit.

In more than three months since, Biden has repeatedly declined to negotiate with the House speaker, insisting that Congress pass a “clean” increase to the federal government’s borrowing cap with no strings attached. Meanwhile, McCarthy’s position was bolstered on May 6 when 43 Republican senators, including McConnell, vowed to oppose any debt limit increase without concessions from Democrats on budget cuts.

Mounting Pressure

The national debt is currently set at $31.4 trillion. When the United States reached that limit in January, the Treasury Department was forced to take “extraordinary measures” to create additional room for borrowing, thereby temporarily avoiding default.

While the United States has never defaulted on its debt before, Treasury Secretary Janet Yellen warned last week that the federal government may break with that precedent as soon as June 1 if the debt ceiling is not raised.

That projection aligns with the latest analysis (pdf) of the Bipartisan Policy Center, which estimates that the “X date”—the date when the federal government is unable to pay all of its bills on time and in full—is likely to occur between early June and early August due to the unexpected extension of tax filing deadlines for those in designated disaster areas in California, Alabama, and Georgia.

But with the potential for default drawing nearer, House Republicans have been quick to remind Biden and the Democrats that they alone have acted to address the issue.

Republican Plan

The Republicans’ “Limit, Save, Grow Act” would raise the debt ceiling by about $1.5 trillion—or through the end of March 2024, whichever occurs first—but would pair that increase with future spending cuts.

Biden criticized that plan on May 8 in a series of tweets, but House Republicans have been quick to remind him that they are the only ones to pass a plan. American Action Network, a conservative nonprofit advocacy group, launched a $250,000 TV ad campaign in the Washington media market urging Biden to negotiate.

Conclusion

The stakes are high as the debt ceiling negotiations continue. If a solution is not reached before June, policymakers may be playing daily Russian roulette with the full faith and credit of the United States, risking financial disaster for their constituents and the country. Even now, the looming deadline is raising costs to the government, and therefore to all taxpayers. It remains to be seen whether Biden will bend on the issue or if the Republicans will continue to hold firm.