President Biden, Speaker McCarthy, and other congressional leaders are set to meet on Tuesday to discuss raising the debt ceiling amidst the ongoing political standoff and renewed urgency given the Treasury Department’s warning that the government could default on its debt as soon as June 1. House Republicans passed their debt ceiling bill last week that would increase the debt ceiling while cutting federal spending by more than $3.5 trillion over the coming decade. The plan would cut discretionary spending by an average of 18% over the next decade with little detail on which programs would be cut or spared. The New York Times estimates that if defense, veterans’ health, and border security are spared (which has been discussed), the remaining programs would have to be cut by half. The bill also includes provisions that repeal some of the Biden administration’ priorities including the plan to cancel student loan debt.
House Democrats meanwhile are calling for an increase in the debt ceiling without conditions (which was done multiple times during the Trump presidency) but the House Republicans claim they will not budge. Tuesday will be the first time in seven months that President Biden and Speaker McCarthy will meet to discuss this issue which will a critical to see if any progress can be made.