5 things you need to know about the crossfire between Trump and Biden over the debt ceiling
- The debt ceiling is a legal limit on how much the U.S. government can borrow to pay its existing bills, and both parties are using it as a political weapon.
- President Joe Biden is refusing to negotiate on spending cuts unless Republicans agree to a clean debt ceiling increase, calling it a manufactured crisis.
- House Speaker Kevin McCarthy and Donald Trump are pushing for sharp spending cuts in exchange for raising the limit, threatening a government default.
- The Treasury Department warns that a default could trigger a global financial crash, with millions of jobs lost and Social Security payments halted.
- This battle has become a partisan crossfire, with each side blaming the other for holding the economy hostage, and a deadline looms in June 2023.