Biden and McCarthy meet with default on the line

A play-by-play preview of the day’s congressional news

May 22, 2023 View in browser   By Katherine Tully-McManus With an assist from Burgess Everett Speaker Kevin McCarthy worked the weekend on debt limit talks and heads to the White House for more today. | Patrick Semansky/AP Photo THE ON AGAIN, OFF AGAIN, ON AGAIN DEBT TALKS — After a turbulent weekend of walkouts and accusations, Speaker Kevin McCarthy heads to the White House today to meet with President Joe Biden, with just 10 days until the nation could tumble into default. Talks continued Sunday night with a two-and-a-half-hour meeting between the speaker, Reps. Patrick McHenry (R-N.C.) and Garret Graves (R-La.), and White House negotiators Shalanda Young, Louisa Terrell and Steve Ricchetti. The White House team pledged to keep talking as they left the Capitol Sunday night. Biden and McCarthy spoke by phone on Sunday as Biden returned from the G-7 summit in Japan, and the two principals will try to close the gap further today on what could seal a bipartisan deal to raise the debt ceiling and avoid default. Weekend warriors: There was motion during talks over the weekend, but it wasn’t necessarily forward movement. The White House put an offer on the table to limit spending on both defense and some nondefense programs such as housing aid, education and scientific research, which the administration considers to be a major concession. Republicans dismissed the offer, pushing instead for boosted spending on military, veterans care and border security. That, in turn, would mean major rollbacks to other domestic programs to a level that the White House rejected. The ongoing disconnect is that House Republicans want to rein in spending by making major spending cuts, which have no hope of passing the Democratic-controlled Senate and are opposed by Biden. ‘Hard deadline’: “We expect to be unable to pay all of our bills in early June, and possibly as soon as June 1st. And I will continue to update Congress, but I certainly haven’t changed my assessment. So I think that’s a hard deadline,” Treasury Secretary Janet Yellen said on NBC’s “Meet the Press” on Sunday while adding: “The odds of reaching June 15th while being able to pay all of our bills is quite low.” Some on the Hill have been treating June 1 as a soft date, despite Yellen’s escalating warnings. Markets are expected to begin reacting and the nation’s credit rating could be downgraded before then. ICYM the last fight: Plenty of folks on and off Capitol Hill weren’t around for the last debt limit nightmare, back in 2011, so this is worth a read: How a 12-year-old playbook is shaping the battle over the debt limit from Victoria Guida and Zachary Warmbrodt Related reads: McCarthy says he'll meet with Biden Monday after 'productive' debt ceiling call, from NBC News; Biden and McCarthy Set to Resume Negotiations on Debt Limit from The New York Times   DON’T MISS POLITICO’S HEALTH CARE SUMMIT: The Covid-19 pandemic helped spur innovation in health care, from the wide adoption of telemedicine, health apps and online pharmacies to mRNA vaccines. But what will the next health care innovations look like? Join POLITICO on Wednesday June 7 for our Health Care Summit to explore how tech and innovation are transforming care and the challenges ahead for access and delivery in the United States. REGISTER NOW.     GOOD MORNING! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Monday, May 22, where next weekend might be long but this work week sure won’t feel short. HUDDLE WEEKLY MOST CLICKED: You know that if someone snapped a fire pic like this of you, you’d change your profile photo pronto, just like George Santos did. And credit where credit is due: Freelance photographer John Taggart took the shot for The Washington Post. MAKING A MARK IN MICHIGAN — Sen. Mark Kelly (D-Ariz.) made a trip to Michigan this weekend to deliver the keynote speech at the Michigan Democratic State Party’s Legacy Dinner honoring retiring Sen. Debbie Stabenow. “When she saw an opportunity to serve, she took it, and she didn’t listen to anyone who told her to wait her turn. As a result, she’s gotten a lot done for this state and for our country. And more than that, she’s shown generations of young women growing up in Michigan that they can set the bar pretty damn high, and they don’t have to wait their turn, either," Kelly told attendees, rattling off some of Stabenow’s trailblazing milestones. Looking ahead to 2024, Kelly also attended a fundraiser for Rep. Elissa Slotkin (D-Mich.), who is running for Stabenow’s Senate seat. He told folks at the fundraiser that Slotkin “doesn’t take any shit” and compared her background at the Pentagon and CIA to Stabenow’s long legacy of public service before Congress. Three would make a trend: Kelly made a trip earlier this year to Montana to support Sen. Jon Tester’s reelection. Kelly is throwing his weight as a battleground state senator (not to mention a famous astronaut and husband of a beloved former House member) to boost Democrats early in what is expected to be a very tough cycle for Dems in the Senate. HOUSE ACTION: CRAs — The House puts pollution regulations and Biden’s student loan forgiveness plan on the chopping block this week using the Congressional Review Act, a tool that allows lawmakers to swiftly overturn executive branch policies with simple majorities in both chambers. Student loans: The House votes this week on a CRA measure to overturn Biden’s student debt cancellation program and force his administration to resume collecting monthly payments and interest from tens of millions of Americans. The legislation would also kill the freeze on federal student loan payments and interest as well as the administration’s plan to forgive up to $20,000 of student debt per borrower. Trucking along: The House will also consider this week the Senate-passed CRA resolution to roll back EPA’s recently finalized emission standards for heavy-duty trucks that would cut harmful soot and smog pollution from trucks starting in model year 2027. The Senate cleared the measure 50-49 back on April 26. CARPER DIEM? — Delaware Democrat Sen. Tom Carper is expected to announce this morning whether he'll run for another six-year term at a news conference in Wilmington, Del. He’s been in the Senate since 2001 but previously served in the House and as governor. SCOTT SNAGS THUNE — One of the Senate GOP’s three Big Johns is backing Sen. Tim Scott’s (R-S.C.) presidential bill: South Dakota’s John Thune will be in North Charleston today for Scott’s official presidential campaign launch, Burgess scooped.   GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGISTER HERE.     HUDDLE HOTDISH Big feelings, marble floors: Sure, this story on dress sneakers dropped Friday, but we know some folks are still feeling the debate deep in their soles. QUICK LINKS  Back in hoodies and gym shorts, Fetterman tackles Senate life after depression treatment, from Mary Clare Jalonick and Marc Leavy at The Associated Press The U.S. Left Them Behind. They Crossed a Jungle to Get Here Anyway, from Julie Turkewitz at The New York Times TODAY IN CONGRESS The House convenes at noon for morning hour debate and 2 p.m. for legislative business. First and last votes are at 6:30 p.m. The Senate is out. AROUND THE HILL 4 p.m. House Rules Committee meeting to consider bills on fentanyl and the CRAs on truck pollution and student loan forgiveness. (H-313 Capitol) TRIVIA FRIDAY’S WINNER: Shelley Stewart correctly answered that the age of the oldest senators (Feinstein and Grassley at 89) minus the age of the youngest senator (Ossoff at 36) give you Sens. John Fetterman (D-Pa.) and Raphael Warnock (D-Ga), both 53 years old. TODAY’S QUESTION from Shelley: Where did President James Madison and wife Dolley live after the British burned down the White House in August 1814? The first person to correctly guess gets a mention in the next edition of Huddle. Send your answers to ktm@politico.com. GET HUDDLE     emailed to your phone each morning. Follow Katherine on Twitter @ktullymcmanus   Follow us

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