The looming possibility of a national default has the White House and Congress in urgent talks, with little progress being made so far. The debt ceiling has been a contentious issue for months, and President Joe Biden had previously maintained that it was not a bargaining tool. However, recent negotiations with Republicans have seen the President backtrack on this stance. It remains unclear what exactly is being discussed, but potential solutions could include changes to permitting rules for domestic energy production, revoking unused COVID funds, additional federal program work requirements, and a cap on federal spending.
Despite this, the Biden administration still claims to be haggling only over the budget, not the debt ceiling. It is clear, however, that the President’s previous no-negotiation stance has failed to garner support from the House of Representatives. Democratic centrists, in particular, have become impatient with Biden’s tactics, leading to their own bipartisan negotiations with Republicans.
In response, the bipartisan Problem Solvers Caucus has offered a fallback plan to suspend the borrowing limit through the end of the year, buying time for broader budget talks. If Congress agrees to certain budget limits and funds a fiscal commission to tackle the nation’s long-term deficits, the plan would increase the debt ceiling through the 2024 elections.
The lack of a primary challenge to Biden’s reelection has given him some room for negotiation, but the lack of a credible plan from the White House has led to tension and uncertainty. While McCarthy has managed to get Biden to negotiate on the GOP’s terms, he has secured no real commitments or specifics from the President. With default looming, the clock is ticking.
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