Debt ceiling talks are now on “pause”, according to House Republicans, after all parties expressed hope earlier this week that a deal could be reached on the horizon.
Rep. Garrett Graves followed White House negotiators out of a meeting in the president’s office and told reporters they had paused negotiations.
He called the talks “unproductive” and said the Biden administration was making “unreasonable” demands.
“Yeah, we’ve had a break,” chairman Kevin McCarthy confirmed to reporters, after expressing hope yesterday that a deal could be reached by next week.
“We have to move the White House and we don’t have a move yet,” McCarthy said.
“Yesterday I really felt like we were where I could see the way – the White House is right – look, we can’t spend more money next year.”
The news broke as President Biden slept in Japan for the G-7 summit – around 1:30 a.m. local time. The White House said it would notify him of updates in the morning.
Rep. Garrett Graves followed White House negotiators into a meeting in the president’s office and told reporters they had paused negotiations.
Shalanda Young, director of the Office of Management and Budget, left, and Steve Ricchetti, adviser to the president, President Joe Biden’s key negotiators on the debt ceiling crisis, head out after talks with the emissaries of House Speaker Kevin McCarthy. a sudden stop
The White House has confirmed that the talks “will be difficult”.
‘There are real differences between the parties on budget issues and the talks will be difficult. The President’s team is working hard for a reasonable bipartisan solution that can pass the House and Senate,’ a spokesperson for the House said. White House.
There are now less than two weeks left before the Treasury runs out of funds to pay the nation’s bills on June 1.
On Thursday, McCarthy had said he wanted a floor vote next week on the deal and said he had spoken to Senate Majority Leader Chuck Schumer about the timing of the vote. The Senate adjourned Thursday and will be absent next week, but Schumer asked senators to be able to return to Washington on 24 hours’ notice if necessary.
“Negotiations are currently progressing as Speaker McCarthy has said he expects the House to vote next week if a deal is reached, and the Senate will begin consideration after that,” Schumer said.
However, members of the House Freedom Caucus are digging to the right, adopting a new stance that calls for “no further discussion” until the Senate passes the House GOP’s Limit Save Grow Act.
“The House Freedom Caucus calls on Speaker McCarthy and Senate Republicans to use every lever and tool at their disposal to ensure the Limit, Save, Grow Act is enacted.
There should be no further discussion until the Senate passes the legislation.
It remains to be seen whether hardline Republicans will accept a negotiated deal less conservative than the party bill passed by the House.
A Freedom Caucus source said the new request was intended to signal to leaders: “Stop talking about watering down the [House GOP] Invoice.’
“Keep negotiating by all means, just start adding and not removing policies.”
President Trump issued his own similar warning to Republicans on Truth Social.
“REPUBLICANS SHOULD NOT MAKE A DEBT CEILING AGREEMENT UNLESS THEY GET EVERYTHING THEY WANT (including ‘the kitchen sink’). THIS IS THE WAY DEMOCRATS HAVE ALWAYS TREATED US. DO NOT BEND!!!’
Meanwhile, Senate Democrats led by Bernie Sanders, I-Vt., released a letter Thursday asking President Biden to invoke the 14th Amendment to bypass Congress and unilaterally raise the debt ceiling.
“It is regrettable that House and Senate Republicans are not acting in good faith,” the letter read. “We write to ask you to urgently prepare to exercise your authority under the 14th Amendment of the Constitution.”
But the message in the letter is starkly different from that coming from leaders on both sides, with Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer saying there could be a deal to vote on in the House this week. next and in the Senate the following week.
Section 4 of the 14th Amendment states: “The validity of the public debt of the United States, authorized by law, including debts incurred for the payment of pensions and bounties for services rendered in the suppression of insurrection or rebellion, should not be questioned.”
The amendment – which granted citizenship to former slaves and extended “equal protection under the law” among other provisions – essentially stipulates that the nation’s debts must be paid in full by the federal government.
Experts have interpreted this to mean that Biden may have some authority to go above Congress and lift the borrowing limit – although there would be legal challenges if he circumvented legislative power in this way.
Senate Democrats led by Bernie Sanders, I-Vt., released a letter on Thursday asking President Biden to invoke the 14th Amendment to bypass Congress and unilaterally raise the debt ceiling
“That’s the whole reason the 14th Amendment exists,” the senator said. John Fetterman, making a rare appearance at a press conference, said, outlining the claim
Fetterman wore his signature hoodie, shorts and sneakers while the other male senators wore suits
The other signers of Sanders’ letter are: Elizabeth Warren, Mass., John Fetterman, Pa., Richard Blumenthal, Connecticut, Tina Smith, Minn., Ed Markey, Mass., Jeff Merkley, Ore., Sheldon Whitehouse, RI, Peter Welch, Vermont, and Mazie Hirono, Hawaii.
“That’s the whole reason the 14th Amendment exists,” Fetterman said, making a rare appearance at a press conference, laying out the request.
Democrats say McCarthy’s reluctance to raise taxes on the wealthy or big business makes it “seemingly impossible to enact a bipartisan budget deal at this time.”
But going the 14th Amendment route would almost certainly result in prompt legal action.
“An unelected Supreme Court justice will try to blow up our economy in his hands, if he has to judge,” Fetterman said, noting the almost guaranteed legal challenges to the maneuver.
‘I’ll be very upfront with you, when we get to that, I’m thinking of taking a look, months down the line, to see if what the court would say about whether it works or not,’ Biden said the last week after meeting with congressional leaders.
Dry Treasury. Janet Yellen, who was clear about the need for Congress to act as soon as possible, also rejected the idea of using the 14th Amendment.
