The theory, which previous administrations had ruled out, builds on Section 4 of the 14th Amendment to argue that it would be unconstitutional for the U.S. to fail to make payments even if the debt limit isn’t raised, effectively challenging the debt limit on legal grounds. But doing so for the first time in U.S.
Treasury Secretary Janet Yellen on Sunday said invoking the 14th Amendment to get around the debt ceiling and continue borrowing money to pay the nation’s bills would risk a “constitutional crisis,” downplaying the idea that the legal theory would solve the looming problem.
Biden is set to meet with House Speaker Kevin McCarthy and other top congressional leaders at the White House on Tuesday to discuss fiscal policy, though it’s unclear if any compromise will be made to avoid a default without using this untested legal theory.
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