Policymakers Need to Raise the Debt Ceiling

Today, President Biden, Speaker McCarthy, Leader Jeffries, Leader Schumer, and Leader McConnell met at the White House for a discussion on raising the debt limit and addressing the federal budget. According to Speaker McCarthy, no party moved off their original position, but they agreed to have staff meet and then to meet again on Friday.

According to recent estimates, the government could hit the federal debt limit between the beginning of June and early August of this year.

The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:

Washington is running out of time before we breach the debt limit. Today’s meeting should have happened months ago, and negotiators need to move quickly to make sure we raise the debt limit. Even flirting with default is dangerous. We are pleased they are meeting again soon, and frankly they should be talking every day.

As part of a debt limit deal or on a separate track, policymakers should begin the process of reducing deficits and debt. The President has put forward $3 trillion of deficit reduction while the House has put forward $5 trillion. Now they should work together to find common ground and compromise.

Caps on discretionary spending, other spending reductions, more revenue, a commission, and debt limit reform should all be on the table as we work to fight inflation and slow down our mounting debt. The only thing negotiators should take off the table is default.

###

For more information, please contact Kim McIntyre, Director of Media Relations, at mcintyre@crfb.org.