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Sen. Joe Manchin, a moderate Democrat, said he wants his party to seek a deal with Republicans to avert a catastrophic US debt default, a position that puts him squarely at odds with President Joe Biden.
The two parties are currently at a standoff over the debt ceiling, which threatens to upend financial markets sometime after early June, when the US may default on a payment obligation.
Manchin (W.Va.) said he already discussed a possible compromise with Speaker Kevin McCarthy (R-Calif.), whose fractious caucus has sought to extract concrete spending cuts and a balanced budget plan in exchange for any increase in the debt ceiling.
Manchin, speaking to Fox Business in Davos, Switzerland, where he’s attending the World Economic Forum, said he wants to package a debt ceiling increase with votes to create special commissions to examine shoring up the Social Security and Medicare trust funds, as well as another intended to reduce the overall US debt.
“We have to work together. It has to be bipartisan and it has always been bipartisan as far as the debt ceiling,” Manchin said. “I think what we have to do is realize we have a problem, we have a debt problem.”
Manchin said he supports the Trust Act, a proposal by Sen. Mitt Romney (R-Utah) to impanel commissions to recommend solutions to the eventual insolvency of the Medicare and Social Security trust funds. Current projections are that Social Security will not be able to pay full benefits after 2035 and Medicare after 2028, without either changes to the benefit structure or increased revenue. Erik Wasson details Manchin’s pitch.
The Treasury Department will start taking “extraordinary measures” today to avoid breaching the $31.4 trillion debt limit, giving lawmakers and Biden several months to address the cap or risk defaulting on US debt obligations.
Happening on the Hill
The House Ways and Means and Budget committees are swapping Republican staff directors as new chairs take the reins.
The doctors in the House want to revamp how Medicare pays physicians, potentially giving health-care providers a boost in pay in coming years.
“Woke CEOs” can expect to appear before Congress, House Majority Leader Steve Scalise (R-La.) said in a tweet that highlights a CNBC story about Bank of America CEO Brian Moynihanand new ESG rules.
A top Republican lawmaker asked the Commerce Department for documents linked to the enforcement of export controls on sensitive technologies, amid concerns that the Biden administration isn’t doing enough to restrict China’s access to advanced semiconductors.
A judge from conservative-led Idaho highlights Biden’s first batch of planned judicial nominees for 2023.
Rep. Greg Steube (R-Fla.) was injured at his home on Wednesday when he fell off a roof, according to news reports and his office.
Around the Administration
- The president will travel to California today to assess recent storm damage, meet with business owners, residents and first responders. Biden will arrive in Santa Clara County at noon PT and at Santa Cruz County at 12:50 p.m. He’ll deliver remarks at 3 p.m. on supporting California’s recovery from the impact of recent extreme weather. Read more.
Biden’s administration will launch an effort to more accurately count the nation’s natural resources in official economic statistics, saying the data are needed to give a true picture of US output.
Treasury Secretary Janet Yellen, declaring that African can help shape the future of the global economy, will set out why the Biden administration intends to elevate its focus on the continent over the next two years in a speech she’s slated to deliver Friday in Dakar, Senegal.
Yellen and China’s Vice Premier Liu He privately discussed points of disagreement during a break from official proceedings in their first face-to-face meeting, according to a senior Treasury official, a sign that the world’s top economies are seeking to downplay tensions and spotlight a constructive tone in their discussions.
The Biden administration is restoring a rule that will require cities, counties and states that receive federal housing funds to examine patterns of residential segregation within their borders and take steps to uproot them, a mandate that was first established by civil rights–era legislation but has proved almost impossible to enact.
Digital-asset exchange FTX’s implosion shows that US platforms should face heightened scrutiny from the Commodity Futures Trading Commission before being able to list crypto assets, according to one top official at the regulator.
A tax credit meant to encourage businesses to retain their employees during the height Covid-19 pandemic is an area high risk for fraud, an IRS official said Wednesday.
The Biden administration’s plan to boost competition in labor markets has a shot at delivering pay raises for US workers without triggering higher inflation, economists say.
A decades-old US Supreme Court precedent making it easy for businesses to deny workers’ religious accommodation requests will be under the microscope now that the justices have a vehicle to reevaluate the standard.