Debt limit fight looms before White House meeting.

Republicans and Democrats are gearing up for a crucial meeting at the White House on Tuesday to discuss raising the debt ceiling. While Democrats appear to be digging in, Republicans are voicing confidence. Rep. Patrick McHenry (R-NC), Chairman of the Financial Services Committee, explained on CBS News why he is less pessimistic about negotiations than he was just two months ago. “Instead of being at the depths of the ocean, I’m merely drowning,” he said. McHenry attributed his boost in confidence to the House passing a bill called the “Limit, Save, Grow Act of 2023,” which would suspend the debt ceiling through March 31, 2024, or until an increase in debt of $1.5 trillion over the current limit of roughly $31.4 trillion.

To combat the House GOP proposal, Senate Majority Leader Chuck Schumer (D-NY) announced that the Senate would hold hearings on the bill to “expose the true impact of this reckless legislation on everyday Americans.” On the House side, Minority Leader Hakeem Jeffries (D-NY) told “Meet the Press” moderator Chuck Todd on Sunday that he does not accept the premise that Democrats are not going to get a clean debt ceiling hike. “We have a constitutional responsibility to make sure that we protect the full faith and credit of the United States of America,” Jeffries added on NBC News.

The White House announced the meeting on Tuesday with congressional leaders of both parties after Treasury Secretary Janet Yellen announced last week that the United States risks defaulting on its debt as early as June 1. A major escalation could arise from an idea entertained by Rep. Jamie Raskin (D-MD), who told MSNBC that Biden has the authority to invoke the 14th Amendment to raise the debt ceiling. Section Four of the 14th Amendment states the “validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.” During an appearance Sunday on ABC News, Yellen warned against the use of the 14th Amendment, saying it would risk a “constitutional crisis.”

Here are some key takeaways from the ongoing negotiations:

Republican Proposal:
– The “Limit, Save, Grow Act of 2023” would suspend the debt ceiling through March 31, 2024, or until an increase in debt of $1.5 trillion over the current limit of roughly $31.4 trillion.
– In exchange for suspending the debt ceiling, the proposal includes spending cuts that take aim at several leftist priorities.

Democratic Response:
– Democrats are pushing for a clean debt ceiling hike.
– Minority Leader Hakeem Jeffries (D-NY) called the GOP proposal a “ransom note” and dismissed the idea of a short-term “punt” to lift the debt ceiling for a few months while talks continue.

Potential Escalation:
– Rep. Jamie Raskin (D-MD) suggested that President Biden has the authority to invoke the 14th Amendment to raise the debt ceiling.
– Treasury Secretary Janet Yellen warned against the use of the 14th Amendment, saying it would risk a “constitutional crisis.”

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