McCarthy Pushing Biden on Debt Limit Talks

House Speaker Kevin McCarthy, R-Calif., on Tuesday outlined his first proposals for spending reforms through a letter to President Joe Biden while putting pressure on him to negotiate calls to raise the nation's debt limit, but said later he is pessimistic because the president "refuses to meet with anybody" on the issues.

McCarthy wants Biden to negotiate fiscal reforms in exchange for raising the national debt limit, and in his letter called for reclaiming unspent COVID-19 relief funding, cuts to nondefense discretionary spending, securing the United States' southern border, creating policies on lower energy costs, and strengthening social safety net program work requirements, reports The Hill.

He also said that he is concerned that Biden is "putting an already fragile economy in jeopardy" by refusing to negotiate "any meaningful changes" to address the nation's $31 trillion debt alongside increasing the debt limit.

"I am incredibly concerned that you are putting an already fragile economy in jeopardy by insisting upon your extreme position of refusing to negotiate any meaningful changes to out-of-control government spending alongside an increase of the debt limit," he wrote.

Earlier this month, Biden released a budget proposal calling for almost $5 trillion in tax increases, and Tuesday night he responded to McCarthy's letter and asked him to submit a budget plan before Congress leaves Thursday for a two-week recess.

However, he said that the conversation "must be separate from prompt action on the Congress' basic obligation to pay the nation's bills and avoid economic catastrophe."

McCarthy told CNBC's "Squawk Box" on Tuesday morning that he is "more concerned than I have ever been to be able to get this debt ceiling done because he refuses to meet with anybody and misleads the American public."

House Republicans are refusing to lift the debt ceiling unless promises are made on spending cuts, and while the White House has agreed to cuts that will need to be made, it won't negotiate about the debt ceiling and says Republicans must be expected to agree on lifting it.

Meanwhile, Senate Majority Leader Chuck Schumer, D-N.Y., said McCarthy's letter won't advance the discussion and comes as he's "really feeling pressure" from House conservatives.

"So he keeps saying the same thing, 'sit down and negotiate,' but as I said, if you sit down and negotiate, we have a plan, he doesn't," he added. "What are they going to do? Talk about the weather?"

Rep. Patrick McHenry, R-N.C., who is one of McCarthy's closest friends in the House, told Punchbowl that he's never seen the speaker be "more pessimistic about an issue than he is about the debt ceiling increase," and that he also does not see a path to a debt ceiling agreement.

House Republicans discussed the McCarthy letter during their conference meeting Tuesday and agreed with his demands.

They also accused the White House of trying to run out the clock by refusing to meet with McCarthy, which would put pressure on GOP lawmakers to agree to a debt ceiling increase this summer.

However, McCarthy said Schumer does not yet have the votes to pass a clean debt ceiling increase, meaning negotiations are needed with Biden.

"If they think they can just raise the debt limit, why don't they do it in the Senate tomorrow?" McCarthy told CNBC.

But White House press secretary Karine Jean-Pierre said in a statement Tuesday that Republicans agreed to pass clean debt limit increases three times when former President Donald Trump was in office.

"It's time for Republicans to stop playing games, pass a clean debt ceiling bill, and quit threatening our economic recovery," she said.