House Speaker Kevin McCarthy said Tuesday that there has been “no progress” in debt ceiling negotiations between House Republicans and the White House, as the U.S. inches closer to risking a first-ever default.
“We’ve made no progress,” the California Republican told CNBC’s “Squawk Box.” “I’m always an optimist. I’m not now.”
Congress periodically needs to lift the debt limit, the maximum amount the federal government is allowed to borrow, to cover spending obligations. The government often spends more money than it takes in from taxes, resulting in the deficit. House Republicans have refused to lift the debt ceiling without promises of spending cuts.
“Time is ticking,” McCarthy said in the interview. “Now I’m very concerned about where we are.”
The U.S. already hit its debt limit, forcing the Treasury to take so-called extraordinary measures to keep paying its bills. The nonpartisan Congressional Budget Office estimated the administration will exhaust its emergency tools sometime this summer, raising the prospect of a default unless lawmakers raise or suspend the ceiling.
The White House has taken the position that while spending cuts need to be made, it will not negotiate on the debt ceiling, and expects Republicans to lift the limit. Democrats argue that the GOP has only made the borrowing limit an issue when a Democratic president is in power. They point to the multiple times Republicans authorized debt ceiling increases under former President Donald Trump while authorizing new spending and tax cuts for the wealthiest Americans.
It has been nearly two months since McCarthy and Biden met to discuss debt ceiling measures. McCarthy, in a letter to Biden on Tuesday morning, said action is needed and called the non-negotiation position “extreme.” McCarthy said he is prepared to continue discussions.
“It’s time to drop the partisanship, roll up our sleeves, and find common ground on this urgent challenge,” McCarthy wrote, asking the White House to reach out to his team…
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