Biden holds debt limit talks from Japan amid fears of U.S. default
President held a virtual meeting on the debt crisis on Friday morning as fears of a U.S. default loom over the summit and the clocks tick toward America being unable to pay its bills. Biden's call came after Vice President on Thursday tried to step in to the negotiations but struggled with voice problems on a zoom call with leaders. The president, surrounded by White House Deputy Chief of Staff Bruce Reed, press secretary and White House Deputy Chief of Staff Jen O'Malley Dillon held a 20-30 minute zoom call with his negotiating team back in Washington, where it was late Thursday night. Biden requested the update, the White House said, and was told 'steady progress' is being made. Harris was not pictured on the call in a photo tweeted out by the White House. And, on a zoom call organized by the Office of Public Engagement on Thursday, she could barely get out her opening lines. 'You can hear I have a bit of a frog in my throat, please forgive me,' she said as her voice cracked. 'I've been talking about this issue a lot recently,' she said, chuckling. Harris only managed to get out a few lines of her pitch about the 'unprecedented' nature of a default. 'It has never happened before,' she said. 'It would mean if it happened it would be the first time in history that the United States government did not pay its bills.' Just as she was getting going blasting the tax cuts under Donald Trump, even while still struggling with voice problems, her audio cut out. McCarthy told reporters at the Capitol on Thursday said it was important to have an 'agreement in principle' by the weekend if they hope to get to a House vote next week. That would leave enough time for the Senate to also act ahead of June 1. 'Everyone's working hard.' McCarthy said. The White House negotiating team was at the Capitol on Thursday and is expected to be back on Friday as both sides try to reach an agreement that Democrats and Republicans can live with. Steve Ricchetti, counselor to the president, along with Office of Management and Budget Director Shalanda Young and legislative affairs director Louisa Terrell are representing the administration in the talks. McCarthy has tasked Republican Reps. Garret Graves of Louisiana and Patrick McHenry of North Carolina with taking the lead for the GOP. McCarthy's Republicans want to roll back spending to fiscal 2022 levels and cap annual increases at just 1% over the next decade - sparing Defense and Veterans accounts - in what Democrats say would be devastating cuts inflicting hardship on many Americans. The Republicans know their proposal would only make a dent in the nation's growing debt load, but they argue that spending cuts need to start somewhere to get a handle on what they say are unsustainable annual deficits. Democrats are resisting, and negotiators are eyeing budget caps for the next several years as an alternative to limits that would extend for a decade. Notably absent from the negotiating room are they congressional appropriators - the House and Senate chairwomen who run the Appropriations Committees, which actually put the spending plans in place. It's clear that Democratic appropriators and perhaps even some Republicans would almost certainly balk at the levels of cuts being considered. Showing the pressure McCarthy faces from his right flank, the conservative House Freedom Caucus said in statement 'there should be no further discussion' until the Senate approves the House-passed Republican bill. With the Senate in Democratic control, that s highly unlikely. And Biden already said he would veto it. House Democratic Leader Hakeem Jeffries said Thursday the Republican proposal for tougher work requirements on recipients of government aide is a 'nonstarter. Period. Full stop.' Jeffries noted that many House Republicans themselves, including McCarthy, voted against enhanced work requirements for food stamp recipients in the Supplemental Nutrition Assistance Program just a few years ago. 'This is hostage taking,' Jeffries said. 'They are trying to extract ransom notes in order to avoid a default.' But Biden opened the door to some work extra requirements for non-health care programs , and the discussions over food stamps and cash assistance programs are ongoing. On changes for permitting, Republicans are eager to undo the National Environmental Policy Act, called NEPA, to allow energy projects to be approved and developed more quickly, without years of delays from challenges and lawsuits. Biden's own climate adviser John Podesta met this week with some House Democrats as the administration, too, seeks changes that would more quickly unleash clean energy projects and upgrade transmission lines to fight climate change. But the two sides remain far apart over the size and scope of the permitting reforms, with several prominent lawmakers, including Democratic Sen. Joe Manchin of West Virginia having their own proposals. It's unclear if the negotiators will be able to reach a final agreement on the permitting provisions or simply arrive at a framework that could lead to future discussions between the White House and Congress. Time is short ahead of the deadline as soon as June 1 to raise the debt limit and avoid what economists warn would be a devastating default, the first of its kind, tearing across the economy. McCarthy has vowed to abide by House rules that require 72 hours notice before voting on any bill, meaning an agreement is needed this weekend if the House wants to vote before it leaves at the end of next week for the Memorial Day recess. Senate Majority Leader Chuck Schumer told senators Thursday, as they prepared to depart for their own weeklong recess, said they need to be ready to return with 24 hours notice to vote, if needed. More likely, the Senate would be expected to start voting when it returns after Memorial Day. Democrats in the House and Senate are engaging in other strategies, including trying to force a vote to raise the debt limit without the spending cuts Republicans demand. Progressives are also pushing Biden to invoke to raise the debt ceiling, something the president has signaled he's not yet inclined to do.