Biden Threatens to Veto GOP Debt Ceiling Bill

Facts

• The White House Office of Management and Budget (OMB) on Tuesday warned that Pres. Joe Biden would veto the House GOP debt ceiling bill if it were to land on his desk, stating that he will not accept legislation imposing conditions to address the debt limit.¹
• This comes as the House Rules Committee wrapped up a six-hour hearing late Tuesday without reaching a decision on whether to send the legislation to the House floor.²
• Though the panel was scheduled to reconvene on Wednesday, it's unclear whether the bill will lock down the 218 votes needed if it were to move to the House floor. Meanwhile, in addition to Biden's opposition, the proposal would likely not pass the Democrat-controlled Senate.²
• In exchange for increasing the statutory cap on how much the US government can borrow to pay its debt, the package, backed by House Speaker Kevin McCarthy (R-Calif.), would cut federal spending and unravel some of Biden's priorities, including student debt cancellation and efforts to tackle climate change.³
• Since January, the Treasury Dept. has been using "extraordinary measures" to pay its bills as the government reached its $31.4T borrowing limit. Officials estimate they could run out of options by early June.⁴

Sources: ¹CBS, ²Reuters, ³Washington Post, and ⁴USA Today.

Narratives

• Democratic narrative, as provided by AlterNet. Republicans are playing a dangerous game of roulette with the economy, and Americans are going to feel pain if they don’t relent. Speaker McCarthy is pushing an extreme wish list that increases costs for hard-working families without actually reducing the deficit. Spending cuts for the future won’t do anything to affect what the US has already spent, and claims to the contrary promote a delusion that will ultimately lead to a default.
• Republican narrative, as provided by Townhall. While Republicans are sympathetic to Americans’ financial struggles, Biden continues to hide from the issue and refuse to negotiate. It’s time for the president to lead by coming to the table with McCarthy and for Democrats to acknowledge their reckless spending got the US into this predicament and must be reined in. Tying the debt ceiling to spending levels is the only way to make the country fiscally responsible.
• Cynical narrative, as provided by ABC News. This government paralysis is just one of the many symptoms of a nation plagued by partisan games, with leaders more concerned with tearing each other down than building the country up. As both sides refuse to compromise, the US is creeping closer to the edge of an economic crisis — something must be done to end this deadlock.

Predictions