Saturday, June 3, 2023
HomeEconomyBiden says not ready to invoke 14th Amendment to avoid debt default

Biden says not ready to invoke 14th Amendment to avoid debt default

WASHINGTON (Reuters) – President Joe Biden said on Friday he was not ready to invoke the 14 Amendment to avoid U.S. debt as early as June Default 1, the first time he has commented that he has not ruled out that option. amendment.

A divided US Congress is running out of time to raise the federal government’s $4 trillion debt ceiling, with the Treasury Department warning it may not be able to pay its bills as early as June 1.

If Congress does not act, some legal experts say Biden has another option to avert crisis: call th Amendment to the US Constitution to ensure United States can continue to pay its bills.

Section IV of the Amendment, passed after 1861)-1861 Civil War, states that “American Public The validity of the debt … cannot be disputed”. But that provision has largely escaped the courts.

Some experts suggest that if Congress does not act, Biden could invoke the amendment to raise the debt ceiling on his own. This would almost certainly lead to a protracted legal battle that could roil financial markets

The White House and other administration officials have studied the possibility, but many believe it is unlikely to be challenged in court The last-ditch solution survived, according to a person with knowledge of those discussions.

Biden and top Republicans and Democrats in Congress will sit down next Tuesday to discuss a three-month standoff over the federal debt ceiling to avoid a serious crisis before the end of the month. breach of contract.

Both sides are clear: Biden calls on lawmakers to boost federal self-imposed borrowing limits, Republican House Speaker Kevin McCarthy says his House won’t approve anything that doesn’t cut spending to fix the state Agreement on growing budget deficit.



Please enter your comment!
Please enter your name here


Featured NEWS