White House Begins to Cave to House Republicans on Debt Ceiling

President Joe Biden caved to Republicans and signaled that he could accept some reforms in a potential debt ceiling deal after months of refusing to negotiate any spending cuts or reforms.

White House and congressional staffers have wrangled over the details of a potential debt ceiling deal.

Treasury Secretary Janet Yellen, who previously warned that the deadline was June 1 to pressure Congress, said she was hopeful about a deal.

“I think the negotiations are very active. I’m told they have found some areas of agreement,” Yellen said.

Treasury Deputy Secretary Wally Adeyemo described the talks as “negotiations” after Biden refused to negotiate with Speaker Kevin McCarthy (R-CA) on a debt ceiling deal.

Biden said that he would meet with House and Senate leaders on Tuesday as the debt ceiling deadline looms ever closer.

On Sunday, Biden said he might accept work requirements for welfare programs other than Medicaid.

“I voted for tougher aid programs that’s in the law now, but for Medicaid it’s a different story. And so I’m waiting to hear what their exact proposal is,” Biden said. Biden supported the 1996 welfare reform bill that then-President Bill Clinton signed into law.

White House spokesman Michael Kikukawa clarified Biden’s comments that Democrats may agree to work requirements for the Temporary Assistance for Needy Families (TANF) and possibly stricter work requirements for the Supplemental Nutrition Assistance Program (SNAP).

He explained:

As the President said, Medicaid is a different story, and the President has been clear that he will not accept proposals that take away peoples’ health coverage. The President has also been clear that he will not accept policies that push Americans into poverty. He will evaluate whatever proposals Republicans bring to the table based on those principles.

The 46th president has for months accused Republicans of wanting the federal government to default on its debt, slash entitlement programs, and even cut veterans’ care. Instead, Biden struck a more positive tone on Sunday, signaling openness to cutting a deal with McCarthy.

“It never is good to characterize a negotiation in the middle of a negotiation. I remain optimistic because I’m a congenital optimist. But I really think there’s a desire on their part, as well as ours, to reach an agreement, and I think we’ll be able to do it,” Biden said.

Despite the increasing openness to a deal, Democrats and Republicans still have to hash out the Republican asks for a debt ceiling deal, which is in the House-passed Limit, Save, Grow Act of 2023. This includes caps on domestic discretionary spending, clawing back unspent coronavirus aid, easing up oil and natural gas permits, and how to lift the debt ceiling.

McCarthy told Breitbart News Washington Bureau Chief Matthew Boyle about how the deficit could drastically impact the nation:

Matthew Perdie / Breitbart News, Jack Knudsen / Breitbart News , Zenny Phuong / Breitbart News