Top House Democrat Hakeem Jeffries said he’s open to talks about federal spending with Speaker Kevin McCarthy, but first wants to see Republicans’ proposal for reductions, and a commitment to take the possibility of defaulting on US debt off the table.
(Bloomberg) — Top House Democrat Hakeem Jeffries said he’s open to talks about federal spending with Speaker Kevin McCarthy, but first wants to see Republicans’ proposal for reductions, and a commitment to take the possibility of defaulting on US debt off the table.
“We can have a conversation about future spending,” Jeffries told reporters on Thursday.
The House minority leader said that before any talks can begin, GOP House members have to coalesce around a concrete demand. So far, various members of the Republican conference have floated balancing the budget in 10 years, trimming entitlements or capping annual appropriations at $130 billion below current levels, as well as changing US asylum laws and ending Covid restrictions.
“Show us the plan. What is your plan to address your concerns?” Jeffries said. “They want to have a conversation and we don’t even have a document in front of us for which to have a discussion around what future investments in the American people should look like.”
The comments suggest a subtle shift may be under way that creates headroom for fiscal talks to solve the current debt-ceiling impasse.
‘Big Problems’
Any deal on budget deficits and appropriations levels could potentially smooth the way for separate passage of a debt-ceiling increase before the Treasury runs out of extraordinary measures sometime after June. While the GOP has pushed for a fiscal plan, President Joe Biden has rejected tying any such negotiations to a debt-limit increase.
“With respect to the debt ceiling, we believe that America has incurred debt authorized by the Congress — and you have to pay your bills,” Jeffries said. “If we fail to pay those bills there are going to be big problems for everyday Americans.”
Jeffries made clear that Democrats will oppose cuts to Social Security, Medicare and veterans benefits.
But he said that he’s developing a “very positive and forward-looking relationship” with McCarthy.
“We have a track record that demonstrates our willingness to have common ground,” he said. “Having a relationship with Speaker McCarthy is the right thing for the American people.”
The next step in the debt-ceiling showdown will be for McCarthy to sit down with Biden for talks, something likely to occur before the Feb. 7 State of the Union address. If the impasse persists, the House is planning to put forward a fiscal 2024 budget resolution in March along with other fiscal options that could form the basis of a future negotiation.
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