White House: 14th Amendment won’t solve debt issue.

The White House Rejects 14th Amendment Solution to Debt Crisis

The White House has dismissed the idea of invoking the 14th Amendment to prevent the US from defaulting on its $31 trillion debt. Nearly a dozen left-wing Senators had suggested that President Joe Biden use such authority. However, White House press secretary Karine Jean-Pierre told reporters that this would not solve the current crisis. She emphasized that Congress needs to act to address the issue.

Debt Ceiling Crisis Looms

The Biden administration has warned that the US could run out of money as soon as June 1. The debt ceiling, a statute established by Congress that prevents the government from spending beyond a predetermined national debt limit of $31.4 trillion, exceeded the threshold earlier this year. Treasury Secretary Janet Yellen affirmed in a letter that her agency expects to default as early as the first day of June unless lawmakers amend the debt limit.

Biden Suggests 14th Amendment Solution

Biden suggested invoking the 14th Amendment, which states the “validity of the public debt of the United States … shall not be questioned,” to raise the debt ceiling during a press conference on Sunday in Japan. However, he acknowledged that the question of whether this could be done in time to avoid default was unresolved.

Republicans and Democrats at Odds

Republicans desire to link a temporary increase in the debt ceiling with spending caps, while Democrats say they prefer separate processes for debt limit negotiations and budget reforms. House Speaker Kevin McCarthy accused Biden of being beholden to “radical socialists” as a potential default looms. However, Jean-Pierre shifted the blame to members of Congress, emphasizing that the president wants any action to be strongly supported by the law.

Urgency to Resolve the Crisis

A default would likely cause a recession as the federal government fails to repay obligations. The national debt is a source of persistent financial risk for the United States and a damper on long-term economic growth. Elevated interest rates on the national debt have recently weighed on the budget as lawmakers are forced to devote more revenues toward servicing the obligations rather than funding programs. There is an urgency to resolve the crisis as soon as possible.

Jeffrey Cawood and Ben Zeisloft contributed to this report.