House Republicans want to use the debt ceiling as leverage to exact cuts in spending by the federal government, though they have not united around any specific plan to do so. The White House contends that it will not negotiate over the increase, which is necessary to cover costs of spending programs and tax cuts previously approved by Congress.
Biden is expected on Wednesday to call for McCarthy to release a specific budget plan and to commit to supporting the nation’s debt obligations, according to a White House memo seen by Reuters. Unlike most other developed countries, the United States puts a hard limit on how much it can borrow, and Congress must periodically raise that cap because the U.S. government spends more than it takes in.
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