Spokesman Kevin McCarthy says he will meet with Biden on WEDNESDAY and will raise debt ceiling: Republican leader promises US won’t default but blames DEMOCRATS for financial standoff
- McCarthy promised that he would not default the US
- Republicans are refusing to agree to a clean debt ceiling hike, while Democrats have said they will not negotiate a national “commitment.”
- The spokesman said cuts to Medicare and Social Security dollars were off the table, but didn’t rule out cutting the US defense budget to offset the debt ceiling hike
House Speaker Kevin McCarthy will have his first meeting with President Joe Biden on Wednesday as chairman of the lower chamber of Congress, where he intends to force bipartisan negotiations on government spending cuts.
The United States could be headed for a massive default if Congress doesn’t take action to raise the debt ceiling that allows the country to pay its bills.
Such a massive blow to the US economy would send global markets into turmoil.
Speaking to CBS News’ Face The Nation on Sunday, McCarthy vowed the US would not default but made it clear he believes the standoff is not his fault.
“The only person standing in the way right now is the President and [Senate Majority Leader] Schumer. They won’t even pass a budget,” the spokesman said
House Speaker Kevin McCarthy announced Sunday that he will have his first meeting with President Biden since taking the gavel on Feb. 1
“They won’t even negotiate. We now have until June. I want to make sure we have something accountable, something to move forward with, and something to pay off our debt with.
Treasury Secretary Janet Yellen told Congress earlier this month that the US has run into its debt ceiling — the total amount of monetary debt the federal government is allowed to bear, which it uses to pay military payrolls, Social Security benefits and other programs affecting millions of people.
House Republicans have made it clear they will not agree to raising the debt ceiling without offsetting it through spending cuts elsewhere.
The White House and Senate Democrats, meanwhile, refuse to budge on such negotiations. Biden officials have argued that raising the debt ceiling is an “obligation” on the government.
Biden officials said the president “looks forward” to meeting McCarthy for further talks but didn’t give a date.
McCarthy announced on Sunday that the meeting is now set for February 1.
Biden has called McCarthy’s request to negotiate the debt ceiling “stunning” (pictured with First Lady Dr. Jill Biden, wearing a Philadelphia Eagles hoodie, at the Delaware Air National Guard Base on Sunday).
“We’ll meet this Wednesday. I know the President said he didn’t want to have discussions, but I think it’s very important that our entire government is focused on finding compromises,” the spokesman said.
“I want to find a sane and responsible way that we can raise the debt ceiling but take control of this runaway spending.”
But Biden made his position on such a conversation clear during a speech at a Virginia union hall last Thursday.
He called McCarthy’s refusal to pay the country’s debt without negotiating future spending cuts “staggering”.
“I will not allow anyone to use the full confidence and credit of the United States as a bargaining chip. In the United States of America, we pay our debts,” Biden promised.
Republican lawmakers campaigning for government spending cuts have yet to reach consensus on where to make cuts.
McCarthy vowed Sunday that cuts to Medicare and Social Security are “completely off the table.”
But according to Bloomberg, earlier this month he pledged to fiscal conservatives to cap discretionary defense spending to 2022 levels — which could effectively mean a $75 billion reduction.
It could cause turmoil and further delays, as several national security hawks within the GOP are already voicing opposition to defense dollar cuts.
Speaking to Face The Nation, McCarthy said defense spending would be “protected” but did not rule out cuts in that budget sector.
“I want to make sure we’re protected on our defense spending, but I want to make sure it’s effective and efficient,” he said.
“I want to look at every single dollar we spend, no matter where it’s spent. I want to eliminate waste wherever it is.”