WASHINGTON (NewsNation Now)— President Joe Biden is expected to talk Monday morning on the importance of raising the debt ceiling as political parties dig in on a dispute over how to raise the government’s borrowing cap.
The United States risks a potentially catastrophic default if a mid-October deadline is not met. If that cap is not raised by Oct. 18, the U.S. probably will face a financial crisis and economic recession, Treasury Secretary Janet Yellen said.
Biden signed legislation to avoid a partial federal shutdown and keep the government funded through Dec. 3.
The work to keep the government open and running served as the backdrop during a chaotic time for Democrats as they struggled to get Biden’s top domestic priorities over the finish line, including a bipartisan $1 trillion infrastructure bill at risk of stalling in the House.
NewsNation will live stream Biden’s remarks in the player above.
With their energy focused on Biden’s agenda, Democrats backed down from a showdown over the debt limit in the government funding bill, deciding to uncouple the borrowing ceiling at the insistence of Republicans.
Republicans say Democrats have the votes to raise the debt limit on their own, and Republican leader Mitch McConnell of Kentucky is insisting they do so.
The U.S. has never defaulted on its debts in the modern era, and historically, both parties have voted to raise the limit. Democrats joined the Republican Senate majority in doing so three times during Donald Trump’s presidency. This time, Democrats wanted to take care of both priorities in one bill, but Senate Republicans blocked that effort Monday.
Raising or suspending the debt limit allows the federal government to pay obligations already incurred. It does not authorize new spending.
Biden will also travel to Michigan on Tuesday to speak to the American people on his vision: It’s time to tax big business and the wealthy and invest that money into child care, health care, education and tackling climate change — what he sees as some of the nation’s most pressing priorities.