![]() ![]() Instead it’s a notable step for an institutionalist who just nine months ago called eliminating the borrowing limit “irresponsible.” That he’s created a working group, officials say, is not evidence that he’s backed off of that. The president has repeatedly expressed openness to testing the popular liberal theory that the 14th Amendment invalidates the debt ceiling. Tribe was among the most vocal advocates for circumventing the debt crisis by invoking the 14th Amendment, which states that the “validity of the public debt” cannot be questioned.ĭespite touting the final compromise, Biden came away from this spring’s debt ceiling talks troubled by how close the country had come to default - and persuaded of the need to search for an alternative, they said. In a sign of its openness to all options, the White House enlisted Harvard Law professor Laurence Tribe to be among the first eight outside legal and economic scholars to meet with the group. White House counsel Stuart Delery and top economic adviser Lael Brainard are leading the administration’s working group, which aides and outside advisers to the White House characterized as a serious undertaking to vet every possible route for sidestepping future crises. “Some Democrats are finally waking up to that.” “It feels like a threshold was crossed,” said Robert Hockett, a Cornell University professor who has studied legal justifications for ignoring the debt limit. After weeks of tense negotiations this spring, Biden struck a deal with House Speaker Kevin McCarthy to suspend the debt ceiling past the next election.īut the GOP’s steep demands - and the willingness among some in the party to default regardless of the outcome - has fueled calls for a workaround from Democrats spooked by the prospect of a more unpredictable rematch in 2025 if Biden wins reelection but Republicans control both the House and Senate. creditworthiness and putting the global economy at risk. The group’s creation comes as Congress’ need to raise the debt limit has become a more common negotiating tool for the Republican majority, threatening U.S. We have the answer right in front of us.” Pramila Jayapal (D-Wash.), who lobbied Biden earlier this year to simply ignore the debt ceiling on grounds that defaulting is unconstitutional rather than give in to Republicans’ negotiation demands. ![]() “We are going to get pummeled on this over and over and over again,” said Rep. ![]() There’s no clear timeline for the project and little in the way of overt direction, outside of analyzing various theories for defusing the debt ceiling.Īnd for the growing cadre of lawmakers, economists and legal scholars still attuned to the issue, Biden’s decision to hand it off to a working group represents a decidedly mundane response to an urgent and existential dilemma. Amid consumer anxiety over the uncertainty, financial experts warn against making fear-based decisions.But there’s reason to be skeptical that concrete action will come soon, if at all. If the debt limit is breached, Biden warned that it could send the U.S. What is at stake? Invoking the 14th Amendment to dodge the debt limit is risky, White House officials say, although Biden has floated it as an option. Here’s when the debt ceiling battle could end. In this comic, see how hitting the debt ceiling could unleash chaos. Understanding the debt ceiling fight : Biden and the House Republican leadership have been on a collision course over the national debt limit. If the debt ceiling isn’t raised by the deadline, here’s what a government default means and the payments at risk. See how each member of the House and Senate voted. The latest: The House and Senate passed a debt ceiling deal as lawmakers rush to avert a disastrous government default on June 5, sending the bill to President Biden to sign into law. ![]()
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