![]() ![]() could briefly miss some payments, and the risk of things getting worse could jolt lawmakers into reaching a deal. If the government were no longer able to borrow, unpaid bills would mount and the government would default.īut, but, but … not all defaults are the same. The Treasury Department would no longer be able to use accounting strategies to keep the government open. government could reach its “X-date” - the moment when it no longer can pay all of its bills. That has at least one big problem: Yellen ruled out the idea in a January interview with The Wall Street Journal, calling it “something that’s a gimmick.” to mint a coin of any denomination if it’s made of platinum. Basically, there is a loophole in the law that could allow the U.S. The idea is that the government could mint a $1 trillion platinum coin and use it to avoid a default. This is among the many creative - and unlikely - solutions circulating on the internet. He told ABC News that the Constitution is “very clear that spending - all those details around spending and money actually has to come through Congress.” James Lankford, R-Okla., said Biden cannot act unilaterally. ![]() “I’ve not gotten there yet,” he told MSNBC. But when pressed about invoking the 14th Amendment during last week, he kept his options open. On Monday, a union of government employee s sued Treasury Secretary Janet Yellen and Biden to make the argument that they are constitutionally obligated to disregard the debt limit.Īs a former senator, Biden likes to defer to Congress. Laurence Tribe, an emeritus Harvard University law school professor, wrote Sunday in The New York Times that Biden can argue he has a constitutional duty to avoid default and thus can blow past the debt limit to continue the spending Congress has already approved. It states that the “validity of the public debt of the United States, authorized by law, … shall not be questioned.” The 14th Amendment became part of the Constitution after the Civil War. There is also the risk that dissent within the GOP caucus could put McCarthy’s speakership at risk, which could then make it even more challenging to reach an agreement. The question as the deadline approaches is whether Republicans stay united and that causes Democrats to cave. Ralph Norman and others say they won’t back anything less than that bill House Republicans passed on April 27 with 217 votes.īut Senate Majority Leader Chuck Schumer, D-N.Y., won’t let that bill make it through the Senate. GOP conservatives such as South Carolina Rep. Those cuts would extend the debt limit through March 31, 2024, or up to an additional $1.5 trillion. The bill also would reverse Biden’s forgiveness of student loan debt, his increased funding for the IRS and the tax incentives created in 2022 to encourage the adoption of clean energy. His debt limit bill would reverse discretionary spending to 2022 levels, then place a 1% cap on increases going forward. McCarthy has a slim majority in the House: 222 Republicans, compared to 213 Democrats. ![]()
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