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Speaker Kevin McCarthy is putting President Biden and Senate Democrats on the spot in the ongoing debt limit standoff by teeing up legislation that would curtail spending in exchange for raising the cap on how much the federal government can borrow to meet expenses.
Mr. McCarthy, California Republican, told an audience at the New York Stock Exchange on Monday that legislation raising the debt ceiling until May 2024 would soon move through the House. The speaker said Republicans are readying the bill, despite President Biden‘s refusal to negotiate spending cuts in exchange for raising the debt ceiling.
“A no-strings-attached debt limit increase will not pass, but since the president continues to hide, House Republicans will take action,” Mr. McCarthy said.
Democrats and the White House dismissed Mr. McCarthy’s speech, saying the speaker was engaging in “brinkmanship” with the country’s ability to pay its bill.
“Speaker McCarthy is holding the full faith and credit of the United States hostage, threatening our economy and hardworking Americans’ retirement,” said White House spokesman Andrew Bates.
Senate Majority Leader Charles E. Schumer said Mr. McCarthy “continues to bumble our country towards a catastrophic default.”
Mr. Biden has refused to negotiate with House Republicans for months, arguing that because Republicans and Democrats have contributed to the more than $31 trillion national debt, both parties should come together to raise the debt limit.
In calling for a clean debt-ceiling hike, the White House cites prior instances during the Reagan and Trump administrations where Democrats and Republicans opted to raise the borrowing cap in a bipartisan fashion.
Congressional Republicans say those instances, however, do not fit the current moment.
