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President Biden is threatening to utilize an unprecedented and constitutionally questionable maneuver to circumvent Republicans on the debt limit with less than two weeks until the U.S. is likely to default and be unable to pay its bill.
Mr. Biden told reporters at a G7 meeting in Japan his administration was exploring whether it could invoke the 14th Amendment as debt limit negotiations with House Republicans sour.
The announcement came shortly before Mr. Biden agreed to host House Speaker Kevin McCarthy at the White House on Monday for another round of talks.
“I’m looking at the 14th Amendment as to whether or not we have the authority — I think we have the authority,” Mr. Biden said. “The question is, could it be done and invoked in time that it would not be appealed, and as a consequence past the date in question and still default on the debt.”
The 14th Amendment declares that the validity of the national debt “shall not be questioned.” Passed after the Civil War, the amendment was designed to prohibit southern states from trying to repudiate debts incurred for “suppressing insurrection or rebellion,” while simultaneously declaring the federal government was not responsible for debts incurred by the Confederacy.
Some legal scholars say the 14th Amendment is broader in scope and gives the president authority to scrap the debt limit altogether and keep paying the nation’s bills without Congress setting a debt ceiling.
Such a maneuver has never been tested and would likely result in a protracted legal battle. Even Mr. Biden’s Treasury secretary admitted the move was legally dubious during a Sunday appearance on NBC’s “Meet the Press.”
“It doesn’t seem like something that could be appropriately used in these circumstances, given the legal uncertainty around it and given the tight timeframe we’re on,” Treasury Secretary Janet Yellen said. “My devout hope is that Congress will raise the debt ceiling, and we will pay all of our bills.
Given the uncertainty, Mr. Biden said he preferred to make a deal with House Republicans to raise the debt ceiling.
“All four congressional leaders agree with me that default is not an option,” said Mr. Biden. “I expect each of these leaders to live up to that commitment.”
Mr. Biden’s flirtation with using the 14th Amendment is seen as a tactic to force Mr. McCarthy to compromise in negotiations over raising the debt limit and cutting spending.
But it also underscores the immense pressure Mr. Biden is facing from fellow Democrats to not give away too much in the same talks.
