Biden optimistic Congress will raise debt ceiling amid budget clash with GOP
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President Biden indicated Wednesday that he believed Congress would eventually vote to raise the federal debt ceiling amid an ongoing clash between his administration and Republican lawmakers over an expansive Democrat-backed $3.5 trillion budget proposal.
"No. They are not going to let us default," Biden said in a reference to Republican lawmakers who oppose raising the limit. "Eight trillion of that is on the Republican watch."
A reporter asked Biden whether he was concerned about the debt limit clash following an event in which he touted the benefits of his administration’s two-pronged infrastructure plan. The federal debt increased by nearly $8 trillion during the Trump administration, with much of the spending occurring during the coronavirus pandemic.
In addition to a Senate-approved bipartisan infrastructure package focused on physical projects, Democrats are pursuing passage of a sweeping 10-year spending plan with massive investments in education, childcare, clean energy, and other party priorities.
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Republicans have argued the $3.5 trillion package, which could pass without GOP support through the budget reconciliation process, is too costly as the country deals with rising inflation and the lingering effects of the COVID-19 pandemic.
Earlier this month, Senate Minority Leader Mitch McConnell ripped Democratic leadership for pursuing the $3.5 trillion budget through partisan means.
"Let me make something perfectly clear: if they don’t need or want our input, they won’t get our help. They won’t get our help with the debt limit increase that these reckless plans will require," McConnell said.
Formally introduced earlier this week, the $3.5 trillion budget proposal did not include explicit language regarding the debt limit, though it did project "appropriate levels of public debt" through 2031. Without an expansion of the debt limit, currently set at $28.5 trillion, the federal government could shut down or default on its obligations.
Biden has argued that tax hikes on corporations and the richest Americans will cover the cost of his infrastructure proposals – a claim that Republicans have rejected.
The president touted his plan as a generational boost to the U.S. economy during a virtual meeting with governors and mayors across the country, including Democratic Michigan Gov. Gretchen Whitmer.
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"I believe that passing this bill will also do something else," Biden said. "It'll help ease the years of gridlock in Washington and show the American people that their government can and will work for them again. We're going to still have big disagreements, but it's happening at a critical time because now is the moment to build our on our momentum."
The Associated Press contributed to this report.