May 19, 2023

Debt Ceiling Update: Talks Continue as June 1 Deadline Approaches

President Joe Biden and Vice President Kamala Harris met with House Speaker Kevin McCarthy (R-CA), House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader Chuck Schumer (D-NY), and Senate Minority Leader Mitch McConnell (R-KY) Tuesday to continue talks about raising the debt ceiling and prevent the nation from defaulting on its financial obligations.

Following the meeting, President Biden and Speaker McCarthy named top staff to negotiate a deal to avert an unprecedented default. Biden will also cut short an upcoming trip to Asia in order to close a deal before a June 1 deadline.

The House GOP has demanded that its budget bill, which Biden and Congressional Democrats strongly oppose, be passed by the Senate in conjunction with any debt ceiling increase. As written, it slashes veterans’ benefits, housing and food assistance for millions of seniors. It also enacts a 22% across-the-board cut to transportation, education, and health care. That means older Americans have to wait longer to get information about their Social Security and Medicare benefits.

Without a debt limit increase, retirement savings accounts are expected to lose at least 20% of their value. Interest rates will surge, hurting businesses and increasing unemployment, and Social Security payments could be delayed or disrupted.

“Extremist GOP House members are willing to tank the economy unless they are allowed to slash essential services and programs for seniors,” said Richard Fiesta, Executive Director of the Alliance. “These partisan shenanigans are not in the nation’s best interest and we must demand that this crisis be resolved.”

URGENT ACTION NEEDED:

Please make your voice heard. Click to tell your Senators and Representative to raise the debt ceiling and vote against the House GOP budget.