The Department of the Treasury has enacted “extraordinary measures” to prevent a default on the U.S. debt till early June, which has given lawmakers six months to negotiate a deal to either raise the debt ceiling or to cut spending.
The debt limit, being the limit that Congress places on itself for how much money it borrows, was reached back on Jan. 19, forcing the Department of the Treasury to enact special measures to prevent a default on the nation’s debt until June 5. Congress has until this date to negotiate a solution to the cap being reached.
“If Republicans want to work together on real solutions […] I’m ready,” President Biden said at a rally in Virginia on Jan. 26. “But I will not let anyone use the full faith and credit of the United States as a bargaining chip.”
President Biden has taken a no-negotiation policy when it has come to the debt ceiling. Meanwhile, congressional Republicans are demanding to spend cuts in exchange for raising the debt ceiling.
“If President Buden is so eager to speak on the economy, then he should set a date to discuss a responsible debt ceiling increase,” House Speaker Kevin McCarthy stated on Twitter. “We must finally address Washington’s irresponsible government spending if we want to put America on a better fiscal path.”
McCarthy is facing backlash from his Senate counterpart. Senate Majority Leader Chuck Schumer is calling upon the Speaker for action on the debt ceiling.
“Unfortunately, [McCarthy] let a group of very extreme people, he gave them the tools,” Schumer said in an interview he gave to Politico. “The plan is to get out Republican colleagues in the house to understand they’re flirting with disaster and hurting the American people, and to let the American people understand that as well.”
At the moment there are several proposals to address the issue as was mentioned in The Review’s previous article. The first is to just raise the debt ceiling; the second is to do away with it all together to remove it as a tool for political gain. These first two measures are supported by Democratic members of Congress and the President. Republicans are calling on Congress to cut spending to decrease the deficit. This is a similar debate that occurred back in 2011 when the debt ceiling was reached.
Congress has until June 5 to come up with a solution before a default on the nation’s debt would be inevitable.
The Review will continue to update as this story develops.
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