(DailyVantage.com) – A warning letter from Treasury Department Secretary Janet Yellen said the debt ceiling could be reached as soon as June 1 putting further pressure on the Biden administration and Speaker of the House Kevin McCarthy to reach a deal to avoid a government shutdown and avoid the economic fallout of defaulting on our nation’s debts.
The Treasury Department letter served as the prompt that finally moved the needle in the administration, with President Biden making arrangements for a meeting with Senate Majority Leader Chuck Schumer (D. NY), Senate Minority Leader Mitch McConnell (R. Ky.), House Speaker Kevin McCarthy (R. Calif.) and House Minority Leader Hakeem Jeffries (D. NY) on May 9, 2023.
In the final days of April Speaker McCarthy and House Republicans passed their legislative plan for raising the budget in a largely symbolic legislative gesture intended to bring President Biden to the negotiation table. The vote, with only 4 House Republicans voting against, signaled to the White House McCarthy’s goals for spending cuts and conservative proposals for social programs.
Senate Republicans said they are following the lead of House Republicans on the debt limit negotiations given that they are the minority party in the senate. Despite the invitation to the negotiating table, GOP leader Mitch McConnell says that the real work on the budget will remain in the hands of McCarthy and Biden and points out that the “Senate isn’t a relevant player this time.”
With possibly less than a month away of defaulting Senate Majority Leader Chuck Schumer (D. NY) formulated a proposal with other Democrats to extend the debt limit through the 2024 presidential election that is waiting in the wings while the chamber instead puts their attention on judicial nominees.
Both chambers of congress will only spend two weeks in session simultaneously throughout May giving very little room for agreement on any exhaustive negotiating. Senate Democrats remain cool to negotiating any spending concessions without first passing a “clean debt ceiling” increase first.
Overall lawmakers on both sides of the aisle express hope to eventually make strides that reduce the deficit and eventually end dependency on debt limit hikes to balance the country’s budget.
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