--- title: Biden and McCarthy to Resume Debt Limit Talks on Tuesday description: President Biden said he believes an agreement can be reached with House Republicans to raise or suspend the debt cap before the U.S. runs out of cash. canonical: https://time.com/6279736/biden-mccarthy-debt-limit/ author: Nik Popli article:opinion: false article:content_tier: free article:published_time: 2023-05-15T02:15:03.000Z article:modified_time: 2026-10-19T07:23:33.348Z article:section: Politics og:title: Biden and McCarthy to Resume Debt Limit Talks on Tuesday og:description: President Biden said he believes an agreement can be reached with House Republicans to raise or suspend the debt cap before the U.S. runs out of cash og:url: https://time.com/6279736/biden-mccarthy-debt-limit/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt0580c81de09c47af/698a3ce84ee262db3831b63f/GettyImages-1254910024.jpg?branch=production&width=1200&quality=75&auto=webp&crop=16:9 og:image:width: 8256 og:image:height: 4644 og:image:alt: US-POLITICS-BIDEN og:type: article twitter:card: summary_large_image twitter:title: Biden and McCarthy to Resume Debt Limit Talks on Tuesday twitter:description: President Biden said he believes an agreement can be reached with House Republicans to raise or suspend the debt cap before the U.S. runs out of cash twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt0580c81de09c47af/698a3ce84ee262db3831b63f/GettyImages-1254910024.jpg?branch=production&width=1200&quality=75&auto=webp&crop=16:9 ---  # Joe Biden and Kevin McCarthy Expected to Resume Debt Limit Talks on Tuesday > Sponsored content. 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The Biden Administration remains locked in a standoff with congressional Republicans over raising the federal debt ceiling, just two weeks before the nation is set to default on its obligations for the first time. The U.S. government hit its congressionally imposed $31.4 trillion borrowing limit in January, and Treasury Secretary Janet Yellen has warned that the country could run out of cash as early as June 1 if Democratic President Joe Biden and Republican House Speaker Kevin McCarthy are unable to reach a deal to raise the debt ceiling._  by [Nik Popli / REHOBOTH BEACH, Del.](https://time.com/author/nik-popli/)  ## Nik Popli / REHOBOTH BEACH, Del. Staff Writer May 15, 2023 2:15 AM UTC The Biden Administration remains locked in a standoff with congressional Republicans over raising the federal debt ceiling, just two weeks before the nation is set to default on its obligations for the first time. The U.S. government hit its congressionally imposed $31.4 trillion borrowing limit in January, and Treasury Secretary Janet Yellen has warned that the country could run out of cash as early as June 1 if Democratic President Joe Biden and Republican House Speaker Kevin McCarthy are unable to reach a deal to raise the debt ceiling.  by [Nik Popli / REHOBOTH BEACH, Del.](https://time.com/author/nik-popli/)  ## Nik Popli / REHOBOTH BEACH, Del. Staff Writer May 15, 2023 2:15 AM UTC Facing pressure to resolve the ongoing U.S. [debt limit standoff](https://time.com/6277301/debt-limit-politics-hearing/), President Joe Biden said he expects to resume budget negotiations with congressional leadership on Tuesday, just one day before he leaves for the G7 summit in Japan. He declined to give details on where they stand in terms of a negotiated deal but said he believed an agreement could be reached with House Republicans to raise or suspend the debt cap before the U.S. runs out of cash, which the Treasury Department has said could happen as early as June 1. “I remain optimistic because I am a congenital optimist,” Biden told reporters on Sunday evening while out for a bike ride in Rehoboth Beach, Del. “I really think there is a desire on their part as well as ours to reach an agreement. And I think we’ll be able to do it.” Biden’s comments come less than a week after Republican House Speaker Kevin McCarthy [said](https://time.com/6278448/debt-ceiling-meeting-progress/) he “didn’t see any new movement” toward a resolution on the debt limit. There is currently little indication that either side has budged from their initial positions. “We’ve not reached the crunch point yet,” Biden [told reporters Saturday](https://time.com/6279664/biden-debt-ceiling-comments/) before boarding a flight to the beach. “There’s real discussion about some changes we all could make. We’re not there yet.” Biden was supposed to meet with McCarthy and other top congressional leaders last Friday, but their meeting was postponed to let staff continue discussions over the weekend. McCarthy has maintained that he wants to attach spending reductions to a debt ceiling increase, while Biden has insisted that he would not negotiate over the debt limit, calling on Congress to pass a clean increase before addressing a framework for spending. When asked if he would support the [tougher work requirements](https://time.com/6276193/republicans-work-requirements-debt-ceiling/) for federal aid recipients that Republicans want included in the deal, Biden said he’s voted for some in the past. “For Medicaid, it’s a different story and so I’m waiting to hear what their exact proposal is,” he said. Pressure is mounting on the two sides to find consensus and break the months-long stalemate. Treasury Secretary Janet Yellen has said the U.S. could default on its debt for the first time in history, a scenario that would be [economically devastating](https://time.com/6279707/debt-ceiling-agreement/) and could plunge the global economy into a financial crisis. Despite the looming deadline to strike a deal with Republicans, Biden said he still plans to travel to Japan on Wednesday for the [Group of Seven summit](https://time.com/6279372/g7-hiroshima-japan-summit-2023/) that is set to begin in Hiroshima on Friday. ## Transcript Condiments are warning that the US is on the precipice of economic Calamity. If the government can't come together and raise the federal debt limit, now, this isn't the first time, the US has been in this situation. We've been here before and the debt-limit crisis has always been resolved by Congress, but this year's B is turning out to be a lot more messy than previous years. And since this debt ceiling is one of the few must pass pieces of legislation. Both parties have to use this issue as an opportunity to take a political stand and exact concessions to cut back on government spending, it would cause the government to default on its legal obligations for the first time in history, creating a financial crisis and threatening jobs for everyday Americans. It could even potentially put the US get risk of a recession. The only country that has a debt ceiling is Denmark the debt limit or the debt. Ceiling is a cap on the total amount of money that the federal government is authorized to borrow to fulfill its Financial Obligations. Everything at the government spends, money on military to Social Security, and Veterans Benefits has to be funded, either through tax revenue, or debt. And for the last two decades, the US has been running a budget deficit. Adding 25 trillion dollars in debt. So the treasury Department now says that the government could be unable to issue new debt and pay its bills as early as June 1st. But Congress has always acted when called upon to raise. The debt limit has 1960 Congress. Acted 78 separate times to permanently raise temporarily extend a revised the debt limit. The debt ceiling has become an increasingly political issue in recent years, especially when power in Washington is divided as it is right now, Republicans control the house and Democrats control the presidency in the Senate. Democrats have been very United on this front. I have insisted from the beginning that they won't accept any concessions attached to a deal and continue to blame Republicans for taking the country's credit hostage in our stash. Continue to me as we speak is not a fact and they're making progress I made clear time and again to falling on a national debt is not an option but that no negotiation strategy, may be impractical with the June 1st deadline approaching in less than two weeks. The number of places that we are still far apart. I mean, it didn't seem like the economy, plays a pivotal role in how Americans cast their ballots. So, the outcome of these debt limit discussions, could shape. What happens in 2024, particularly if Biden was unable to raise the debt limit before defaulting, or if he accepts concessions that undo, his legislative accomplishment, for instance, progresses. My see him as weak. If he accepts, the GOP is proposed, work requirements for federal aid. This is a very big moment for Joe Biden. 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