President Joe Biden announced on Wednesday that he will not negotiate the raising of the debt limit with Republicans. His statement comes as House Republicans prepare to pass a bill that links a debt limit increase with spending cuts. Biden cited previous Republican presidents Ronald Reagan and Donald Trump, who both advocated for raising the debt limit during their time in office. The Treasury Department has warned that the debt limit must be raised by this summer, or the U.S. will default, which could lead to significant economic consequences such as price increases, job losses, and a downturn in financial markets. Despite Republicans’ efforts to negotiate, Biden has remained firm in his stance that the debt limit must be raised without conditions.
The Republicans’ proposed legislation, known as the Limit, Save, Grow Act, would cap government funding hashed out by lawmakers annually at fiscal 2022 levels, potentially leading to steep cuts in popular programs. The bill would also limit spending growth to 1 percent annually over the next decade and roll back several Biden administration actions on student loans, among other measures aimed at curbing spending. While Republicans hope to use the bill to bring Biden to the negotiating table, the White House has already indicated that Biden would veto the measure if it passed the House and Senate.
