(PatriotWise.com) — Republican House Speaker Kevin McCarthy said the threat of a US debt default will not become a reality. Speaking a day after meeting with President Biden, he said a default will not happen and he is encouraged by the President’s willingness to negotiate. “The only thing I’m confident about is now we have a structure to find a way to come to a conclusion,” McCarthy said.
The two sides have been negotiating for weeks to resolve a stand-off and ensure the matter is agreed upon before the June 1st deadline. House Minority Leader Hakeem Jeffries also said he is confident an agreement can be reached before that time.
The stand-off relates to raising the debt ceiling – the amount the government can borrow. The White House wants to extend the ceiling but needs Republican support in Congress to do so. Republicans say they will only support raising the ceiling if the government commits to spending cuts. So far, the White House has refused most of the proposals put forward by the GOP.
Hakeem Jeffries said plans to place restrictions on benefit entitlements were a “non-starter.” Republicans had suggested work requirements for some people on Medicaid, and that able-bodied people below the age of 55 should complete 20 hours of work per week to qualify for certain benefits.
Treasury Secretary Janet Yellen issued a stark warning recently saying that agreement must be reached by June 1st as a US default could be catastrophic. She said it would seriously undermine America’s position on the world stage and even threaten national security. It could also trigger a global financial crisis and plunge the US into recession.
The current debt ceiling is set at $31.4 trillion. It has been raised 78 times since the 1960s – under both Republican and Democratic Presidents. In 2022, most government money was spent on social security, followed by health, income security, national defense, medicare, and education. Social security alone cost $1.2 trillion in 2022.
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