McCarthy optimistic about agreement with Biden on debt ceiling - POLITICO

McCarthy has taken the opportunity to attempt to force government spending cuts; the U.S. needs to both lift the nation’s debt ceiling and “take control of this runaway spending,” McCarthy told host Margaret Brennan on Sunday.

The Biden administration has argued Congress has the responsibility to pass a debt limit increase without conditions attached, noting that Congress did exactly that three times during former President Donald Trump’s tenure.

Asked about White House concerns that some Republicans are seeking cuts to Social Security and Medicare, McCarthy said, “Let’s take those off the table.”

McCarthy insisted the U.S. wouldn’t default on its debt — an unprecedented potential consequence of inaction that could wreak widespread damage on the nation’s credit and the global economy.

The U.S. already hit its statutory limit on debt earlier this month, but Treasury Secretary Janet Yellen has predicted “extraordinary measures” could prevent default until June.

Some Republicans have argued they could mitigate the situation by having the federal government prioritize who it pays and when, but it’s not clear if that is feasible, given that so much of the system is automated.