Senate Minority Leader Mitch McConnell (R-KY) has called on President Joe Biden to negotiate with House Speaker Kevin McCarthy over the debt ceiling to avoid a default on the nation's national debt. As time runs out, McConnell urged Biden to accept the reality of a divided government and be ready to give up ground.
"There are just seven legislative days left before June 1 when the nation could default on its $31.4 trillion debt," warned Treasury Secretary Janet Yellen. Amidst this crisis, President Joe Biden has floated using the 14th Amendment as a workaround for his standoff with House Republicans regarding raising the debt ceiling.
McCarthy, unlike McConnell, did not immediately rule out a default but cast himself as unable to affect the result either way. The United States risks defaulting on its debts if lawmakers can't come to a deal soon; negotiations between McCarthy and Biden have reportedly not been fruitful thus far.
Lawmakers are already bracing for canceled Memorial Day plans due in part to this crisis. Rep. Ruben Gallego (D-Ariz.) is floating declaring a state of emergency in Arizona as Title 42 winds down.
The House GOP is hoping that addressing concerns from members who oppose legislation over E-Verify will help them reach an agreement sooner rather than later. E-Verify would require employers to check their employees' legal status before hiring them.
Rep. Jamie Raskin, one of Capitol Hill's top constitutional lawyers, stated that President Joe Biden has a "clear constitutional command" under the 14th Amendment should he need it in order to avoid defaulting on US national obligations.
House Speaker Kevin McCarthy (R-Calif.), however, seeks passage of his own bill which would ultimately raise taxes for farmers and homeowners while gutting essential programs—moves opposed by both parties since 1960 at least 78 times.
Meanwhile, China's growing influence on international trade and the yuan's increasing use as a reserve currency underscore the urgency of resolving this debt crisis. President Obama is also expected to attend a Thursday afternoon meeting with lawmakers to discuss the farm bill process, which could be tense due to Democrats' strong objections to House GOP proposals for raising the debt limit.
As June 1 rapidly approaches, it remains unclear whether Biden will be able to negotiate an agreement with McCarthy or resort to using his constitutional powers under the 14th Amendment. The stakes are high for both domestic and global economies as they watch these events unfold in Washington D.C.