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Tipsheet

Biden Sent McCarthy a Staff Memo to Negotiate the Debt Ceiling. It Did Not Go Well.

AP Photo/Andrew Harnik

Ahead of debt ceiling negotiations at the White House Wednesday, House Speaker Kevin McCarthy received a memo from Biden administration officials. 

The memo, sent to "interested parties" by Office of Management and Budget Director Shalanda Young and Economic Council Director Brian Deese, details the demands President Joe Biden plans to present to McCarthy during their meeting.

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"Will the Speaker commit to the bedrock principle that the United States will never default on its financial obligations, as Leaders Schumer, McConnell, and Jeffries have already done - and does he agree with former presidents, including Presidents Trump and Reagan, that it is critical to avoid debt limit brinksmanship?" the first demand states. 

"When will Speaker McCarthy and House Republicans release their Budget? President Biden will release a budget on March 9. It is essential that Speaker McCarthy likewise commit to releasing a budget, so that the American people can see how House Republicans plan to reduce the deficit - whether through Social Security cuts; cuts to Medicare, Medicaid, and Affordable Care Act (ACA) health coverage; and/or cuts to research, education, and public safety - as well as how much their Budget will add to the deficit with tax cuts for the wealthiest Americans and large corporations, as in their first bill this year," the second says. 

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McCarthy is blasting what he's calling a "staff memo" as political gamesmanship.  

McCarthy has indicated he will agree to raise the debt limit in return for spending cuts. 

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