Congress Recesses with Debt Limit Fight Ahead

Congress is on its two-week Easter recess with a debate on raising the federal government’s statutory borrowing limit expected to heat up immediately upon its return. On Tuesday of last week, House Speaker Kevin McCarthy called on President Joe Biden to set a date to begin negotiations with House Republicans on spending cuts to accompany a debt-limit increase. Biden responded by saying he would meet with McCarthy after the Easter recess if the House Republicans develop a budget before then. House Budget Chairman Jodey Arrington (R-TX), however, said debt-limit talks should not wait for development of a budget resolution, which is a lengthy process.

While the White House is insisting that it will not negotiate on the debt-limit issue, centrist Democrats and Republicans are holding talks to agree on a fallback deal in case a standoff persists.