House Speaker Kevin McCarthy warned in a speech at the New York Stock Exchange on Monday that America's debt is unsustainable and a threat to the nation, hitting out at President Biden for refusing to negotiate on cost-cutting measures.
"Without exaggeration, American debt is a ticking time bomb that will detonate unless we take serious, responsible action," McCarthy, R-Calif., said. "Yet how has President Biden reacted to this issue? He has done nothing."
McCarthy said he met with Biden on Feb. 1 to discuss budget cuts and said the president agreed at the time to negotiate in good faith, but the House speaker has not heard back from the White House since.
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"The longer President Biden waits to be sensible to find an agreement, the more likely it becomes that this administration will bump into the first default in our nation's history," McCarthy said. "Addressing the debt requires us to find common ground and reduce spending."
The California Republican then announced that the GOP-led House will vote on raising the debt limit – currently at $31 trillion – in coming weeks to avoid a default, but said the legislation would include provisions rolling federal spending back to fiscal 2022 levels and limit subsequent spending increases to no more than 1% per year over a decade.
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The White House said ahead of McCarthy’s address that "a speech isn’t a plan," dismissing his overture and re-upping pressure on the Republican leader to approve a debt ceiling increase with no strings attached.
"There is one responsible solution to the debt limit: addressing it promptly, without brinksmanship or hostage-taking," said White House Deputy press secretary Andrew Bates.
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The Treasury Department has said it is taking "extraordinary measures" to continue paying its bills, but money will run short this summer.
FOX Business' Eric Revell, Elizabeth Elkind and The Associated Press contributed to this report.
