Staff Reports
A senior administration official said that Joe Biden did not intend to invoke the 14th Amendment to prevent the US from going into default if Congress and the White House cannot reach a deal to raise the country's debt limit. Initially, he was considering doing so, but he decided to backtrack after some Democrats and Republicans criticized his plan. The fourth section of the amendment states that the government's debt is legal.
Wally Adeyemo, the Deputy Treasury Secretary, stated that the 14th Amendment cannot solve the issues that the country faces. He stated that Congress is the only entity that can do so.
Some Democrats, such as Alexandria Ocasio-Cortez and Laurence Tribe of Harvard Law School, urged President Biden to use the 14th Amendment of the Constitution to avoid a debt default. But, constitutional experts and Republicans warned him that it could have very serious consequences. Andrew McCarthy of the National Review Institute stated that issuing bonds based on this interpretation would be worthless.
Asked by @PoppyHarlowCNN if President Biden would invoke the 14th Amendment to avert a debt default, Deputy Treasury Secretary Wally Adeyemo says, unequivocally, “No.” pic.twitter.com/TBV8OqEYcZ
— David Gura (@davidgura) May 26, 2023
House Speaker Kevin McCarthy and Biden are currently engaged in talks about a possible deal to increase the country's borrowing authority. The Freedom Caucus stated that they would not support a deal without conditions, such as spending cuts. In addition to Republicans, McCarthy also needs their support to keep the majority party united.
Mitch McConnell, the Senate Minority Leader, stated that it was not an option to use the 14th amendment. Lauren Boebert, a Republican from Colorado, said that Congress has the power under Section 4 of the Constitution to enforce it. Janet Yellen, the Treasury Secretary, warned that doing so could lead to a constitutional crisis.
The president is not allowed to unilaterally pay the country's creditors if Congress does not give its approval. Raising the debt limit is required to prevent a global financial crisis, but it must also be done in a legally sound manner. If House Republicans insist on spending cuts, the negotiations may drag on for a long time.
The Biden administration has to find a way to convince House Republicans to raise the borrowing limit without further delays.
Source: The Daily Caller
