White House and Congressional Leaders Work Together to Avoid Potential Default on U.S. Debt Ceiling

President Joe Biden and congressional leaders met at the White House on Tuesday to discuss the debt ceiling and the potential for a default. The meeting was attended by Vice President Kamala Harris, Senate Minority Leader Mitch McConnell (R-Ky.), and House Speaker Kevin McCarthy (R-Calif.). Following the meeting, a team of White House negotiators, including Louisa Terrell, director of the Office of Legislative Affairs, Shalanda Young, director of the Office of Management and Budget, and Steve Ricchetti, a close adviser to the president, met with House GOP aides and Rep. Garret Graves, R-La. at the Capitol.

The White House had been attempting to counter China’s increasing influence in the western Pacific with a planned visit to Papua New Guinea by President Biden. However, this effort was the first casualty of Republican attempts to make honoring the U.S. debt contingent on cutting medical and food benefits for welfare recipients.

The negotiations between the White House and House GOP aides are building on “direct and productive” discussions from the week prior, according to a White House official. The parties are attempting to reach a deal to raise the debt ceiling ahead of a potential default.

The debt ceiling is the legal limit on the amount of money the federal government can borrow. If the debt ceiling is not raised, the government will be unable to borrow more money and will default on its debt. This could have serious economic consequences, including a potential recession.

The White House and congressional leaders are continuing to work together to reach a deal to raise the debt ceiling and avoid a potential default. It is unclear at this time when a deal will be reached.