As the United States looms closer to defaulting on its debt, business organizations are urging President Joe Biden and other elected officials to reach a compromise on raising the debt ceiling.
The federal government is expected to default if the $31.4 trillion debt ceiling is not raised by June 1. Biden was originally scheduled to meet with lawmakers, including House Speaker Kevin McCarthy (R-CA), on Friday but the meeting has been postponed to this week. In late April, House Republicans passed a bill that would raise the debt limit but undo much of Biden’s agenda, including recently passed climate and tax laws, and would freeze spending for a decade. The bill was considered a non-starter among many Democrats and Biden indicated he would veto it. Neither side has been able to make substantial progress on an agreement since.
“We urge civility and bipartisanship as solutions are discussed to raise the debt ceiling and reduce out-of-control federal spending,” said Eric Hoplin, president and CEO of the National Association of Wholesaler-Distributors. “The time for partisan politics and talking points is over. Washington must get serious about raising the debt ceiling and protecting our economy while taking serious steps toward addressing the out-of-control spending that led us here in the first place. We must enact sound fiscal policies to ensure that we never again test the fiscal cliff and place American businesses and families in a dangerous economic position.”
U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley echoed the NAW’s statement, saying “The full faith and credit of the United States government should never be placed at risk."
Instead, Bradley offered suggestions on where Democrats and Republicans can find a compromise. “While there are plenty of areas where the two parties disagree, two areas that are ripe for inclusion are permitting reform and an agreement on discretionary spending caps, both of which can improve the federal government’s fiscal outlook. Leaders in both parties have made clear that our broken permitting process must be fixed and based on the proposals introduced in Congress, it is clear that a bipartisan agreement is possible," he continued. "Over the long run, permitting reform has the potential to reduce the costs of projects, allowing more to be completed, and facilitate investment in infrastructure by providing greater predictability, transparency, and efficiency.
“Both Republicans and Democrats have acknowledged that they will have to reach an agreement on top-line discretionary spending levels in order to complete the appropriations process and fund the government. Capping spending below the current projected baselines will reduce future deficits while providing greater certainty to the appropriations process."