McCarthy says Biden call on debt limit ‘productive,’ leaders to meet Monday

Speaker Kevin McCarthy (R-Calif.) said on Sunday that a call he had with President Biden about the debt limit and looming default earlier in the day was “productive” and that the pair will meet in-person on Monday upon the president’s return from Japan.

“I believe it was a productive phone call,” McCarthy told reporters, noting that Biden had spoken to him from Air Force One.

The White House had arranged the call in an effort to reignite talks as Biden heads back to Washington from the Group of Seven (G7) summit. He cut his international trip short early to return to the U.S. for the talks.

The White House said in a readout after the call that staff-level talks will reconvene on Sunday evening before McCarthy and Biden meet on Monday. McCarthy indicated Reps. Garret Graves (R-La.) and Patrick McHenry (R-N.C.) would be part of those negotiations. 

Asked whether he’s more hopeful of an agreement after his call with the president, McCarthy said, “Look, from a perspective, our teams are talking today and we’re setting [up] to have a meeting tomorrow. That’s better than it was earlier, so, yes.”

Negotiations between Biden and McCarthy and their teams have grown tense as the country braces for the potential of defaulting on its trillions of dollars of debts, which economists predict would wreck havoc on the financial market.

The White House has spent months pushing for a clean debt limit increase without parameters but McCarthy and GOP lawmakers are pushing for spending cuts as part of a deal. Biden and McCarthy huddled earlier this month with other congressional leaders after the Treasury warned the U.S. could default as soon as June 1.

“Look, we’re 11 days out. We’ve got to be able to solve this problem,” McCarthy told reporters. “We have to spend less than we spent last year.”

In an appearance on Fox News’ “Sunday Morning Futures” earlier Sunday, McCarthy indicated that Biden was caving to pressure from the more progressive-wing of the Democratic Party. In his remarks to reporters at the Capitol later, McCarthy expressed great respect for the White House team negotiating on Biden’s behalf.

In a tweet, McCarthy indicated that his position “has not changed” when it comes to a deal that includes spending cuts.

“My position has not changed. Washington cannot continue to spend money we do not have at the expense of children and grandchildren,” McCarthy tweeted.

As lawmakers and the White House work against the clock to avoid what Treasury Secretary Janet Yellen has warned could be catastrophic economic consequences of a default, Biden said on Sunday that he thinks he has the authority to use a clause in the 14th Amendment to unilaterally address the debt ceiling, making his strongest remarks yet on that matter.

“All four congressional leaders agree with me that … default is not — let me say it again — default is not an option,” Biden said at a press conference in Hiroshima ahead of his call with McCarthy, adding that he expects the leaders “to live up to that commitment.””

“America has never defaulted — never defaulted on our debt, and it never will,” Biden said.

Updated 1:43 p.m.