Tipsheet

BREAKING: Biden Backs Down on Debt Ceiling

Katie Pavlich
Katie Pavlich  |  May 10, 2023 4:20 PM

Speaking to reporters after an event in New York Wednesday afternoon, President Joe Biden indicated he's willing to push aside his demands for a "clean" debt ceiling increase and negotiate spending cuts with lawmakers on Capitol Hill. 

"Do you feel more optimistic about a deal today that you did yesterday?" a reporter asked.

"Sure," Biden responded, adding that he wants to look at specific spending cuts Democrats and Republicans can agree on. 

The President also said would consider skipping his planned trip to the G7 next week in Japan in order to get a deal done. He met with congressional leadership, including House Speaker Kevin McCarthy, at the White House Tuesday afternoon. Little movement came out of that meeting. 

But Tuesday night, Biden also refused to rule out taking unilateral action to raise the debt limit. 

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In April Republicans passed legislation lifting the debt limit by $1.5 trillion while also capping federal spending at 2022 levels. In addition, the bill claws back billions in unused pandemic relief funding. The White House says they want to avoid a debt default. Republicans have passed a bill doing exactly that. 

Until yesterday, the White House indicated they were willing to default with hopes Republicans would take the political blame and again demanded the debt limit be lifted without spending cuts attached.