Speaking to reporters ahead of his travel to Japan to attend the G-7 summit, President Joe Biden said that he’s “confident” that negotiators will reach a deal to raise the debt limit and the United States will avoid a first-ever default.
"I'm confident that we'll get the agreement on the budget and America will not default,” Biden said one day after his meeting with House Speaker Kevin McCarthy, R-Calif., and other congressional leaders, which he described as “civil and respectful.”
“Everyone came to the meeting, I think, in good faith,” Biden said, later adding: "Every leader in the room understands the consequences of the failure to pay our bills, and it would be catastrophic for the American economy and the American people if we didn't pay our bills."
Biden's remarks came days after Treasury Secretary Janet Yellen warned that the U.S. could reach a first-ever default “as early as June 1.” Experts, both inside the White House and out, have warned that the U.S. defaulting on its obligations could devastate the global economy.
His speech also came hours after Democrats took action to try and maneuver around the House Republican majority, circulating a discharge petition in order to force a vote on the debt limit as a fallback option in case an agreement cannot be reached. Such a move would require the support of five House Republicans in order to secure a majority in the chamber.
Biden did not address the House Democrats' discharge petition, instead projecting optimism that lawmakers will reach an accord.
"We're gonna come together, because there's no alternative way to do the right thing for the country," Biden said. "We have to move on."
"To be clear, this negotiation is about the outlines of what the budget will look like, not about whether or not we're going to, in fact, pay our debts," Biden added. "The leaders all agree, we will not default. Every leader has said that."
Biden would not acknowledge whether or not work requirements for social safety net programs — which McCarthy calls a "red line," but House Democratic Leader Hakeem Jeffries, D-N.Y., called a "non-starter" — are on the table in debt talks.
"Depends on what they are," Biden said when asked if work requirements are a "red line."
"I’m not going to accept any work requirements that’s going to impact on medical health needs of people," Biden said. "I’m not going to accept any work requirements that go much beyond what is already — I voted years ago for the work requirements that exist, but it’s possible there could be a few others, but not anything of any consequence."
Among the news that emerged from Tuesday's meeting, arguably the most notable was the revelation that the scope of the negotiations has narrowed to be between the House speaker and the president.
"Yesterday, we all agreed that both Speaker McCarthy and I would designate senior members that we will negotiate to give our authority to make agreements in detail what we wanted, so we narrowed the group ... to meet and hammer out our differences," Biden said. "And we've done that, in fact, they met last night. They're going to be meeting again today. And I'll be in constant contact with my team while I'm at the G-7 and in close touch with Speaker McCarthy and other leaders as well."
Office of Management and Budget Director Shalanda Young, Steve Ricchetti, counselor to the president and legislative affairs director Louisa Terrell will lead innegotiations for the Democratic side, while Rep. Garret Graves, R-La., a key McCarthy ally who has been a point person for the speaker on debt and budget issues, will represent Republicans.
The White House and Democrats have characterized that the negotiations are about the budget, not the debt limit. McCarthy and other Republicans disagree, saying the two issues are inexorably linked.
"We now have a time problem, so I'm hopeful the president's team will join us Republicans to produce a responsible spending agreement to raise the debt ceiling," Senate Minority Leader Mitch McConnell, R-Ky., said Wednesday about the scope of negotiations narrowing. "It’s encouraging that the White House is now engaging seriously with the only counterpart that can help deliver an actual solution."
McConnell's Democratic counterpart, Senate Majority Leader Chuck Schumer, D-N.Y., said Tuesday's meeting "was the most positive" sit-down leaders have had on the debt limit.
"There was goodwill, an openness to work together and it was a promising step forward," Schumer said on the Senate floor. "I asked the Speaker if this needed to be a bipartisan process and he said Yes. Again, this I believe is a promising step in the right direction. Nobody will get anything they want in these discussions and I hope nobody draws red lines in the sand."
"I'm hopeful we can reach an agreement as soon as possible," Schumer added. "I'm glad both sides are making a good effort for now of removing default from the table."
Biden's speech on Wednesday came ahead of his departure for Hiroshima, Japan, for the G-7 summit — and one after he cancelled planned travel to Papua, New Guinea, and Australia in order to focus on the negotiations.
The president said that he will be in "constant contact" with his team, and will remain in "close touch" with Speaker McCarthy and other leaders.
"What I have done in anticipation that we won't get it all done until I get back is I've cut my trip short in order to be here for the final negotiation, to sign the deal," Biden said. "I made clear that, and I'll say it again, America is not a deadbeat nation. We pay our bills. The nation has never defaulted on his debt and never will. And we're going to continue these discussions with congressional leaders that are coming days until we reach an agreement."
Biden said it's his intent to hold a press conference upon his return Sunday to discuss the issue.
"I have more to say about that on Sunday," Biden said. "I want to have a press conference on this issue. As it stands now, the intention is to go to the g7 be back here on Sunday at a press conference."
"In the meantime, I've spoken to the Australian leader [Prime Minister Anthony] Albanese, and I've spoken to I'm going to be seeing him at the G-7," Biden said. "He'll be there as well, along with the Indian Prime Minister and along with the Japanese [Prime Minister] as well. So the quad members will be there, we'll get a chance to talk separately at the meeting. But it's unlikely I'm going to be going on to Australia."
The Associated Press contributed to this report.