In what could be described as a race against time, President Biden has met with Congressional leaders to reach an agreement on the U.S. debt ceiling just weeks before a possible federal government debt default.
In talking with Republican Speaker of the House Kevin McCarthy and Democrat Senate Majority Leader Charles Schumer, the President said he “wanted to hear what their exact proposal is.”
For his part, McCarthy told reporters that the groundwork for further talks between the White House and Congress has now been established, adding that it is “possible to get a deal” within the next several days.
While McCarthy has suggested that the nation’s debt could be decreased through a series of social program spending reductions, Biden has said he will not negotiate any new restrictions on Medicaid spending.
A particularly thorny issue is centered on a Republican push to expand work requirements for those receiving public assistance, in particular the Supplemental Nutrition Assistance Program.
“When you’re talking about work requirements, remember what we’re talking about: Able-bodied people with no dependents,” remarked McCarthy.
Treasury Secretary Janet Yellen, meanwhile, has once again warned that a default on the government’s debts is likely to happen sooner rather than later. While earlier estimates thought that the government had at least until mid-summer for a debt day of reckoning, Yellen said Washington has the ability to pay its bill only until June 1.
Yellen added that failure to reach an agreement on the debt ceiling “could lead to a recession that destroys many American jobs and businesses.”
By Garry Boulard
