McCarthy forces Biden to the table

WASHINGTON —  With barely one week left before the U.S. might stop paying its bills, Washington lawmakers are inching toward a deal to ensure the world will avoid cataclysmic economic fallout.

Congress must raise the debt limit by June 1 to authorize the nation to pay its debts. If the U.S. defaults, market chaos and a recession are likely.

For months, President Biden publicly insisted he would not negotiate over paying the federal government’s bills. White House officials said the GOP should keep with its past practice of raising the debt ceiling — at least under Republican presidents — without preconditions. But House Speaker Kevin McCarthy and his rambunctious caucus have successfully forced President Biden and his party to the table.

What could Democrats give up to raise the debt ceiling? How much longer will this drag on?

Hello, friends. I’m Erin B. Logan, a reporter covering national politics for the L.A. Times. This week, we are going to talk about messaging, bipartisanship and the U.S. debt ceiling.

The GOP gets Biden to the table

House Republicans have long demanded the White House negotiate with them over spending to avoid a default. For weeks, Biden has refused. But it soon became clear he would have to barter with Republicans in order to secure an increase to the debt limit. Aides for the White House and McCarthy (R-Bakersfield) have gone back and forth over spending priorities.

On Monday, after flying back early from the annual gathering of the Group of 7 nations, Biden met with McCarthy in the Oval Office.

“We are optimistic we may be able to make some progress,” Biden told reporters ahead of the meeting.

Biden said that he and McCarthy agreed the nation needed to reduce its deficit but that they still had disagreements over where to cut spending, adding that he wanted to focus on tax loopholes.

“We do have disagreements,” McCarthy said. But, the speaker said, he and Biden “both agree that we need to change the trajectory, that our debt is too large.”

Just before White House officials shuffled journalists out of the Oval Office, one reporter asked Biden “is overall spending the way to resolve this?”

“Not alone,” Biden replied. “Not that alone.”

Negotiations lag

Still, even after meeting on Monday, it’s clear there is a gap between the parties’ respective priorities.

McCarthy on Tuesday reportedly told his colleagues behind closed doors that they “are nowhere near a deal yet.”

He claimed that the White House was trying to make Medicare and Social Security part of the conversation “to try to disrupt the whole negotiations,” one journalist reported, though a White House official later denied that Social Security was part of the discussion.

Biden has made clear he does not want to use the 14th Amendment to avoid default, citing likely lengthy legal battles. So, conferring with Republicans is the only feasible path forward. The two parties have to come to an agreement by as early as next Thursday or it is “highly likely” the federal government will default on its bills, Treasury Secretary Janet L. Yellen warned in a Monday letter.

McCarthy has made clear default is not an option. Though some in his party are balking at the idea of having to compromise with Democrats, McCarthy has said that “at the end we can find common ground” and come to a deal.

The latest from the campaign trail

—South Carolina Sen. Tim Scott launched his presidential campaign on Monday, offering an optimistic and compassionate message he’s hoping can serve as a contrast to the political combativeness that has dominated the early GOP primary field, the Associated Press reported.

—During the pandemic, the federal government expanded access to healthcare. But Gov. Ron DeSantis’ Florida is one of a dwindling number of states that continue to reject federal Obamacare money to insure more low-income residents under Medicaid, Times writer Noah Bierman reported.

—GOP presidential candidate Larry Elder has agreed to pay a $2,000 fine for violating the state Political Reform Act while running for governor during the 2021 recall election, Times writer Seema Mehta reported.

The view from Washington

—Fewer migrants are crossing the southern border of the U.S., and the doomsday scenarios that many politicians feared would follow the expiration of the pandemic-era restrictions known as Title 42 have not materialized, Times writers Hamed Aleaziz and Patrick J. McDonnell reported. The reasons for the decline in border crossings are still unclear — and the trend is still in its infancy — but interviews with migrants offer some possible explanations.

—Wrapping up a summit of the world’s wealthiest democracies here Sunday, Biden had domestic trouble on his mind — the flagging U.S. debt talks — but also addressed the administration’s most pressing international concerns: Ukraine and China, Times writers Courtney Subramanian and Tracy Wilkinson reported.

—Police have arrested a Missouri man who they believe intentionally crashed a U-Haul truck into a security barrier at a park across from the White House, the Associated Press reported. Video shows a police officer at the scene picking up and inventorying several pieces of evidence from the truck, including a Nazi flag.

The view from California

—Monday’s historic Colorado River agreement represents a big win for California, which only months ago was embroiled in a bitter feud with Arizona, Nevada and four other Western states over how to dramatically reduce their use of water supplies in the shrinking river, Times writers Hayley Smith and Ian James reported.

—Gov. Gavin Newsom unveiled a sweeping package of legislation and signed an executive order Friday to make it easier to build transportation, clean energy and water infrastructure across California, Times writers Liam Dillion and Hannah Wiley reported.

—Seven counties opted for an Oct. 1 rollout of the law that orders each county to create special courts, whose judges have the authority to order treatment plans for individuals with untreated schizophrenia and related disorders, Times writer Thomas Curwen reported. Even though the plans are not compulsory, the courts hope for compliance as the law tries to straddle a line between voluntary and mandated treatment.

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