What to Know in Washington: McCarthy Ups Debt Cap Heat on Biden

Speaker Kevin McCarthy on Thursday escalated demands for President Joe Biden and Democrats to avoid a debt-ceiling crisis by embracing the plan that House Republicans passed the day before on party lines.

“The Senate’s done nothing,” McCarthy (R-Calif.) said in an interview with Bloomberg Television’s “Balance of Power.” “They haven’t done anything on the debt ceiling and the president’s ignored this problem.”

Still buoyant from Wednesday’s passage of his proposal requiring broad spending cuts in return for raising the nation’s debt limit, McCarthy said House Republicans were the ones serious about averting a potentially catastrophic debt default in upcoming weeks.

Photo: Win McNamee/Getty Images

Kevin McCarthy (R-Calif.) press conference at the U.S. Capitol

McCarthy said Biden put the economy in “jeopardy” by not negotiating with him. The last time they met on the debt ceiling, he said, was Feb. 1 — 85 days ago.

Senate Democrats have declared McCarthy’s debt ceiling bill, which passed 217-215, dead on arrival.

And Biden continues to say he won’t entertain any strings-attached bargaining in order to raise the $31.4 trillion limit, such as spending cuts. He has indicated he may be open to “separate” budget talks.

McCarthy stressed there is room for compromise on the Republican demands but Biden must open talks.

“There’s two things I will not do, Mr. President. I will not raise taxes and we will not raise a clean debt ceiling. But we can talk about everything else,” McCarthy said.

McCarthy brushed aside doubts he would be able secure passage of an eventual compromise given his fractious GOP conference.

”That’s a great question, because that’s the same question I had all week whether I could pass this bill,” McCarthy said, still reveling in the victory. “We can get something together.” Read more from Annmarie Hordern and Billy House.

BIDEN’S AGENDA

• Biden at 2:30 p.m. presents the Commander-in-Chief’s trophy to the Air Force Falcons at the White House
• The president and the first lady at 6:45 p.m. participate in a Democratic National Committee reception in Washington, D.C.

CONGRESS’ SCHEDULE

• The House meets at 9 a.m. to vote on a repeal of a Biden administration two-year suspension of tariffs on solar panels from Southeast Asia.
• The Senate returns Monday.

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To contact the reporters on this story: Brandon Lee in Washington at blee@bgov.com; Michaela Ross in Washington at mross@bgov.com

To contact the editor responsible for this story: Kayla Sharpe at ksharpe@bloombergindustry.com