Yellen says using 14th Amendment to scrap debt limit would cause a 'constitutional crisis'

Ryan King

May 07, 11:14 AM May 07, 11:14 AM

Treasury Secretary Janet Yellen repeatedly declined to rule out the possibility of declaring the debt ceiling unconstitutional if Congress fails to resolve its standoff, but said doing so would be a "not-good" option.

Amid the brinkmanship, some have suggested that President Joe Biden could invoke the 14th Amendment to scrap the debt limit and avert a default. Yellen warned that such action would trigger a constitutional crisis and also stressed that Congress must act quickly to forestall an economic calamity.

REPUBLICANS WORRY THESE THREE CHANGES TO DEBT CEILING BILL WILL SINK FUTURE PLANS

"There is no way to protect our financial system in our economy other than Congress doing its job and raising the debt ceiling and enabling us to pay our bills. And we should not get to the point where we need to consider whether the president can go on issuing debt. This would be a constitutional crisis," Yellen said on ABC's This Week.

The 14th Amendment stipulates that the “validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.” However, the Constitution also grants Congress the power of the purse.

Yellen avoided a direct answer about whether such action was off the table.

"If Congress fails to meet its responsibility, there are simply no good options. And the ones that you've listed are among the not-good options," Yellen added.

Biden downplayed the potential use of the 14th Amendment during a recent MSNBC interview.

"I've not gotten there yet," he said.

Yellen also re-upped her well-worn warnings that if Congress fails to up the debt limit, "economic chaos would ensue" that would unleash havoc on both the domestic and global economy. She insisted that there are no more tricks in the department's reserve to buy additional time.

Biden is set to meet with congressional leaders, including House Speaker Kevin McCarthy (R-CA), on May 9. McCarthy and Biden last met back in February. The United States rammed up against its $31.4 trillion debt limit back in January, but the Treasury Department has deployed "extraordinary measures" to keep funds flowing in the time since.

Yellen recently estimated that those steps will run dry by June 1, giving Congress less than a month to resolve its differences. So far, neither side has shown signs of blinking, with Biden demanding a clean bill with no strings attached and McCarthy adamant that spending cuts be part of any deal.

Biden re-ups calls for gun safety reforms after Alabama and Louisville shootings

Ryan King

April 16, 05:37 PM April 16, 05:37 PM

President Joe Biden once again dusted off his entreaties for gun safety reforms in the wake of the Alabama birthday and Kentucky park shootings.

"Jill and I are praying for their families, and for the many others injured and fighting for their lives in the wake of this weekend’s gun violence," Biden said in a statement. "Guns are the leading killer of children in America, and the numbers are rising – not declining. This is outrageous and unacceptable."

NANCY MACE BLASTS GOP FOR 'NOT OFFERING ANY TYPE OF SOLUTION TO REDUCE GUN VIOLENCE'

On Saturday evening, four individuals were killed and roughly 15 were injured at a Sweet 16 birthday party in Dadeville, Alabama. Many of the victims are undergoing treatment for their injuries and an investigation remains ongoing, police said.

Meanwhile, in Louisville, Kentucky, two were killed and four others were injured at near Chickasaw Park after a gunman opened fire into a crowd Saturday evening. Police indicated the suspect remains at large. That shooting came on the heels of an Old National Bank shooting last week that left five dead.

"What has our nation come to when children cannot attend a birthday party without fear? When parents have to worry every time their kids walk out the door to school, to the movie theater, or to the park?" Biden asked.

Late last month, a gunman killed three children and three adults at the Covenant School in Nashville, Tennessee. Following that attack, which killed a friend of his wife, Gov. Bill Lee (R-TN) signed an executive order to bolster background checks. Biden made sure to praise him for taking that action.

"I commend Tennessee Governor Bill Lee for signing an Executive Order to expand background checks and calling on the Tennessee statehouse to pass a red flag law. I hope more Republican officials will follow suit and take action," Biden said.

Biden also chastised Republican leaders for standing "alongside the NRA in a race to the bottom on dangerous laws that further erode gun safety." Top Republicans attended the recent National Rifle Association conference in Indianapolis. Biden then quickly outlines some of the specific reforms he'd like Congress to take up.

"It is within Congress’ power to require safe storage of firearms, require background checks for all gun sales, eliminate gun manufacturers’ immunity from liability, and ban assault weapons and high-capacity magazines – and this should happen without delay," Biden said.

Centrist Democrats plotting fallback plan if Biden fails to strike debt deal

Ryan King

April 03, 08:36 AM April 03, 08:36 AM

A cohort of centrist House Democrats is reportedly in the early stages of hatching a contingency plan to muffle fallout from a debt ceiling negotiation breakdown.

For weeks, the band of Democrats has been molding plans for a deal with centrist House Republicans in the event that the country winds up on the precipice of default, riling both their progressive peers and the White House, which has sought a united front against the GOP, Politico reported.

MCCONNELL COULD BE KEY TO BIDEN STRATEGY OF SPLITTING GOP ON DEBT CEILING

“You’ve got party leaders in both houses that don’t want us to talk to one another," one centrist Democrat said.

Specific details of the plan remain sparse, as it is still in its infancy, but the group of Democrats has met with centrist Republicans since February, per the report. They fear that the possible ramifications of blowing past the deadline to resolve the debt ceiling impasse could be dire.

Democratic leadership has sought a clean bill to raise the debt ceiling without making any concessions to Republicans and believes they have the advantage. Earlier this year, the White House was adamant there would be no negotiations with Republicans on the nation's borrowing authority, though President Joe Biden later met with House Speaker Kevin McCarthy (R-CA).

In January, the United States hit its $31.4 trillion debt limit, meaning it can no longer borrow additional money. However, Congress approved a budgeting package last year that relies on massive deficit spending. At the moment, the Treasury has been undertaking "extraordinary" measures to keep national payments going by moving money around for various accounts.

But those measures are projected to run out by June, according to the Treasury. The Congressional Budget Office is more optimistic and projects the Treasury will run dry on cash between July and September.

Members of the House Problem Solvers Caucus, a bipartisan group of lawmakers that seeks to find common ground, have long signaled plans to try to concoct a solution to the stalemate. Further complicating these efforts is the fact that Congress has adjourned until April 17.

Biden unveiled a $6.9 trillion budget proposal last month seeking to increase pressure on Republicans. GOP leadership has so far been unable to produce a counterproposal, though members of the Freedom Caucus have outlined demands that the White House has dubbed a "five-alarm fire."

McCarthy, who wrote a letter to Biden last week demanding he step up, has insisted that a GOP budgeting plan is not needed to resolve the debt ceiling impasse. But Democrats see GOP complacency as an advantage.

“We’re gaining ground because of [House Republicans’] inability to put together a plan,” Senate Majority Leader Chuck Schumer (D-NY) said. “I’m certainly willing to entertain a mix of things on the budget. Not on the debt ceiling.”

In addition to sensing an advantage, Democratic leadership views granting concessions to McCarthy as emboldening him to strong-arm them with the debt ceiling in the future. They want the debt limit off the table.

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Should the two sides fail to broker an agreement, the U.S. runs the risk of default, which economists argue would ravage the economy.

Some solutions that have floated around include prioritizing spending so that the interest payment is always met regardless of whether the extraordinary measures run out. However, some Treasury Department officials have cast doubt on the ability to move money that way.

Bernie Sanders endorses Brandon Johnson in Chicago mayoral race

Ryan King

March 16, 05:30 PM March 16, 05:30 PM

Sen. Bernie Sanders (I-VT) waded into the contentious Democratic race for Chicago mayor, endorsing progressive Cook County Commissioner Brandon Johnson.

Sanders lavished praise on Johnson for being a "champion for working families" and backing initiatives for social services by ramping up taxes on the rich. Johnson has taken more progressive positions on myriad issues relative to his foe, Paul Vallas, the former CEO of Chicago Public Schools.

CHICAGO MAYORAL RACE: PAUL VALLAS HOLDS LEAD OVER BRANDON JOHNSON IN LATEST POLLS AHEAD OF EARLY VOTING

"He is not afraid to stand up for strong unions and make big corporations and the rich pay their fair share to invest in affordable housing, quality health care, better schools, and good jobs," Sanders said in a statement. "Brandon understands the struggles of working people, and is prepared to address them, and that is why I am proud to endorse his campaign for mayor of the city of Chicago."

The Chicago contest garnered national attention after incumbent Democratic Mayor Lori Lightfoot lost reelection, the first incumbent to do so since 1989. She had been under fire for high levels of crime and homelessness and her response to the COVID-19 pandemic.

Johnson welcomed Sanders's backing. He was recently endorsed by Sen. Elizabeth Warren (D-MA) last week.

"I’m honored to have the support of Senator @BernieSanders in this campaign. Our movement is about fighting for working people, and that is what Sen. Sanders has done his entire life. Together, we will deliver the change we need to build a better, safer Chicago," Johnson tweeted.

Polls have pegged a tight race between the two, who advanced to a runoff after the Feb. 28 election. One recent poll conducted by Victory Research found Vallas edging out Johnson 44.9% to 39.1%.

Johnson has lurched to the left on public safety compared to Vallas, who has positioned himself as the law and order candidate. Vallas is backed by the Fraternal Order of Police and has rankled progressives over his support for school choice.

The pair are slated to face off in the April 4 mayoral runoff.

White House confirms Biden will veto GOP-backed anti-ESG bill

Ryan King

March 01, 03:22 PM March 01, 03:22 PM

White House press secretary Karine Jean-Pierre confirmed Wednesday that President Joe Biden will veto the Republican-backed bill rolling back a Labor Department investing rule if it makes it to his desk.

House Republicans advanced a bill Tuesday to undo a Biden administration rule that permits retirement plans to consider environmental, social, and corporate governance, or ESG, in their investment decisions. The veto, which had been widely speculated, could become the first of his presidency.

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"It forces MAGA Republicans' ideology down the throats of the private sector and handcuffing investors as well. The bill would bar fiduciaries from considering significant risks like extreme climate threats and poor corporate governance when they make investment decisions," Jean-Pierre told reporters during a White House press briefing.

Centrist Democratic Sens. Jon Tester (D-MT) and Joe Manchin (D-WV) signaled they will back the bill, which must first clear the Senate to get to Biden's desk. Supporters of the push to scrap the so-called ESG rule argue the policy is "woke capitalism" that undermines retirement accounts for workers, but Jean-Pierre contended it could hamstring investors.

"It would give investment professionals less flexibility to make prudent decisions, meaning they won't be free to maximize the retirement savings for millions of Americans. That would jeopardize the retirement and life savings for police officers, firefighters, teachers, and tens of millions [of] retirees all across the country," she said.

"This is unacceptable to the President and that is why he will veto this bill if it does come to his desk," she added. "President Biden is focused on protecting workers' hard-earned life savings and pensions. And that is what he's going to continue to do."

Under the resolution, the ESG rule “shall have no force or effect" and investment managers are expected to consider financial returns instead of other issues when making decisions. The measure cleared the lower chamber 216-204.

Biden recently announced that he will tap Julie Su to be his next labor secretary to replace Marty Walsh who is leaving to become the next executive director of the NHL Players' Association.

WATCH: Tiana Lowe 'sympathizes' with GOP fears that McCarthy won’t abate spending

Steff Thomas

January 05, 02:58 PM January 05, 02:58 PM

Washington Examiner commentary writer Tiana Lowe said she is “incredibly sympathetic” to House Republicans’ fears that Rep. Kevin McCarthy (R-CA) won’t be able to hold the line as speaker when it comes to combating excessive spending.

“I am incredibly sympathetic to the fear of McCarthy not being able to hold the line, but the issue is, that’s not a McCarthy problem. That is a Republican problem, right?” Lowe said on Fox Business’s Mornings with Maria.

“But the fact that, you know, McCarthy’s leadership style with [President Joe Biden] has been to wait until the last minute, flail, and try and block the budget. Then we just spent $1.7 trillion on top of our $31 trillion national debt,” she added, referring to the omnibus spending bill signed by Biden last week.

ENDGAME: THREE WAYS HOUSE SPEAKER CHAOS COULD FINALLY BE RESOLVED

Cutting down on government spending has been a stated priority for House Republicans now that they have secured a majority in the House of Representatives. One of the concessions McCarthy’s opponents have pushed is for more restrictions that block members from earmarking spending on unrelated bills for their own projects.

Republicans in both the House and the Senate are expected to use the nation’s debt ceiling as leverage to push for policy changes. Lowe argues that decisions shouldn’t be made hastily, as raising the debt ceiling or defaulting will bring its own problems.

"So the issue that I think everyone’s focusing on is the debt ceiling, right? But let’s think about what that fight really means. We have unfunded liabilities. Do we want our national credit rating to go down? We can’t afford that,” Lowe said.

“We cannot afford to have all of our creditors believe that we cannot pay them back. And that’s what letting the debt ceiling default or not voting to increase it does in effect,” she added.

Lowe explained that this is why the House needs a speaker in place who can hold the line on cutting the spending that has been prevalent in the last two years of the Biden administration and under Democratic control of both chambers of Congress.

“You need someone to be able to hold the line at the beginning, and if you aren’t going to raise taxes ... if you’re not going to start taxing the endowments of the universities, if you’re not going to start going after these things that we’ve effectively federalized, then you need to cut spending,” Lowe said.

“[But] no one wants to talk about it,” she added.

To secure the gavel, McCarthy needs 218 lawmakers to vote for him. In the new Congress, the GOP only holds a nine-vote advantage in the House, giving the California Republican a challenge as he faces growing opposition within his party.

After failing to make headway in three rounds of roll call votes on Wednesday, McCarthy proposed a new bout of concessions to some of his most stubborn opponents in a last-ditch effort to win their support.

The House reconvened Thursday afternoon for its third day of the speaker election.

Pope Benedict XVI's body lying in state at Vatican

Conrad Hoyt

January 02, 04:20 AM January 02, 04:36 AM

The body of Pope Emeritus Benedict XVI is lying in state in St. Peter's Basilica as thousands of people line up to pay their respects on Monday.

Benedict died on New Year's Eve at the age of 95, nine years after he retired as pope, becoming the first pontiff in 600 years to do so. Benedict's body will be displayed for three days in an open casket at the church, with people allowed to pay their respects until 7 p.m. each evening.

BENEDICT XVI: VATICAN IN UNCHARTED WATERS FOLLOWING DEATH OF RETIRED PONTIFF FOR FIRST TIME

Pope Francis succeeded Benedict after the latter's surprise announcement. The camerlengo typically runs the Vatican between the death of one pope and the election of the next. This time, Francis will continue running the Vatican. Francis will also preside over the funeral at St. Peter's Square on Thursday. Benedict requested a funeral marked by simplicity.

Francis mourned and gave thanks to his predecessor hours after his death on Saturday.

“We are moved as we recall him as such a noble person, so kind. And we feel such gratitude in our hearts: gratitude to God for having given him to the Church and to the world,” Francis said in his remarks, according to a transcript provided by the Vatican News Service.

President Joe Biden, the second Catholic president, said he and first lady Jill Biden were mourning the death of the pope emeritus. The president noted that he met with Benedict in 2011 and said that the pope was generous and welcoming. "May his focus on the ministry of charity continue to be an inspiration to us all," Biden said.

It is not yet known which representatives of the U.S. will be present at Benedict's funeral, but delegations from Italy and Benedict's native Germany are expected to be in attendance.

WATCH: Arkansas Gov. Asa Hutchinson calls Biden ‘inconsistent’ on Title 42

Steff Thomas

December 24, 05:23 PM December 24, 05:30 PM

The Biden administration has maintained that the COVID-19 pandemic isn’t over, but the rush to end Title 42 shows how “inconsistent” their claims are, according to Gov. Asa Hutchinson (R-AR).

Hutchinson said President Joe Biden has a “separate agenda” and is not merely trying to manage the public health crisis, but is using the emergency to extend Medicaid requirements.

“The fact is, we still have COVID. We still have flu. And we manage the COVID in the same way that you manage the flu, not in the sense of a public health emergency,” Arkansas's governor said Friday on Fox Business's The Evening Edit.

ALL EYES ON CHIEF JUSTICE ROBERTS AS TITLE 42 BORDER POLICY HANGS BY A THREAD

“Totally inconsistent. We need to continue [Title 42]. He knows what's coming ahead,” Hutchinson told host Elizabeth MacDonald. “It's unacceptable to say that we've got to end this now.”

Title 42 of the Public Health Service Act of 1944 was enacted by the Centers for Disease Control and Prevention in March 2020, one week after then-President Donald Trump declared a national emergency over the coronavirus pandemic in March 2020.

The policy gave the Trump administration the ability to deny the admission of goods and people who posed a risk of spreading a communicable disease. Under the law, all noncitizens seeking asylum at ports of entry and those who crossed illegally between the ports were to be expelled back immediately into Mexico and not be taken into custody by Border Patrol.

The Arkansas Republican said the administration should keep the policy in place until April to give Congress time to enact specific changes to the Trump-era immigration policy.

“[There are] other ways to approach it that would protect our border. Congress needs to address it in that fashion,” he said.

Top Biden officials, such as Dr. Anthony Fauci, have been silent about the end of Title 42, even as they’ve worked tirelessly to promote vaccination and other COVID-related restrictions. Hutchinson came to Fauci’s defense.

“While he should speak out and be clear, and he doesn't need to get in the political arena, he's a public health official, [so] he ought to stick to the public health requirements,” the governor said, since it’s a topic overlaid with politics.

But sometimes, Hutchinson noted, the leadership has to reverse what public health officials say in order to keep the economy moving or to protect the border. “We've got to put a practicality to our border security,” he said.

“Title 42 needs to continue, not because Dr. Fauci is saying we have a public health crisis, but because it is the practical thing that we need to do right now. Until we enact other options to protect our border: That's the bottom line,” Hutchinson said.

The policy was slated to expire on Wednesday but was kept from termination after Chief Justice John Roberts issued a temporary administrative stay following an emergency plea from 19 Republican-led states.

The Biden administration also asked the Supreme Court on Tuesday for a delay in the termination, asking for the program to conclude no sooner than next week.

Biden confuses Cambodia with Colombia for second time at ASEAN summit

Naomi Lim

November 12, 10:06 AM November 12, 10:06 AM

President Joe Biden seemed to confuse Cambodia and Colombia for the second time in as many days as he offered his remarks at this year's ASEAN summit.

"I want to thank the prime minister for Colombia’s leadership as ASEAN chair," Biden told Cambodian Prime Minister Hun Sen on Saturday evening local time.

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Biden, who is in Phnom Penh for the meeting of Southeast Asian leaders, spoke with Hun Sen one-on-one on Saturday afternoon, earlier making the prime minister wait "several minutes" by himself for their photo opportunity, according to pool reports. Once there, Biden ignored shouted questions about China while photographers captured them shaking hands. Before their sit-down discussion, Biden told reporters the wider group would address energy, national security, and "seeing the return of democracy in Myanmar."

Biden similarly confused Cambodia and Colombia when he left the White House on Friday for the Egypt-hosted COP27 climate conference.

"Anyway, you guys, I’m heading down to — first of all, going to Cairo for the, for the environmental effort, then heading over to Colombia and then — I mean, Cambodia," he told reporters on the South Lawn. "I was thinking — I’m thinking the Western Hemisphere. And then off to Indonesia. So there will be a lot to talk about."

Biden is expected to attend the East Asia Summit Gala on Saturday night before departing for Indonesia for the G-20 leaders' summit next week.

Man indicted on charges of threatening Biden and Bennie Thompson with letter containing unknown powder

Cami Mondeaux

October 20, 08:23 AM October 20, 08:31 AM

A Pennsylvania man was indicted by a federal grand jury on Wednesday after allegedly threatening President Joe Biden and Rep. Bennie Thompson (D-MS) by sending a letter containing death threats and an unknown white powder.

Robert Maverick Vargo, 25, was indicted on charges of threatening the president of the United States, interstate communications with a threat, and influencing a federal official by threat after sending letters containing threats to kill the politicians, according to the Department of Justice. The letter was sent to the Rayburn House Office Building on Oct. 11 and prompted a shelter-in-place order for staff members.

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“I'm going to kill you! I will make you feel the rest of our pain & suffering,” the note read. “There is nowhere or nobody who can keep you from me. I am going to kill you & those you love. I promise you that I will keep my promise until the day of my death. … You & Joe Biden soon will face death for the wrongs you’ve done to US.”

The letter alluded to anthrax, a serious bacterial illness, and contained an unidentified white powder, according to court filings. Capitol Police later determined the powder did not pose a threat, and an investigation found that Vargo sent the letter from the Luzerne County Correctional Facility in Wilkes-Barre, Pennsylvania.

The incident is still under investigation. If found guilty, Vargo faces up to 25 years in prison, followed by supervised release, as well as a fine.

View: Biden speaks at PA union subsequent MAGA-bashing Milwaukee speech

Julia Johnson

September 05, 05:26 PM September 05, 06:07 PM

President Joe Biden will provide his next spherical of Labor Day remarks Monday night in Pennsylvania. This arrives soon after his speech early Monday afternoon at Laborfest in Milwaukee, Wisconsin, where he bashed "MAGA Republicans."

The function, at United Steelworkers of The usa Area Union 2227 in Pittsburgh, is scheduled to begin at 5:30 p.m.

Watch: HECKLER DISRUPTS BIDEN LABOR Working day SPEECH IN MILWAUKEE

Upon his afternoon arrival in Pennsylvania, Biden was greeted by Sen. Bob Casey (D-PA), Rep. Conor Lamb (D-PA), Rep. Mike Doyle (D-PA), Allegheny County Government Rich Fitzgerald, and Pittsburgh Mayor Ed Gainey, in accordance to a White Dwelling report.

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When the president arrived at the venue, he greeted Lt. Gov. John Fetterman, who is managing from Republican Mehmet Oz in a heated struggle for the state's open up Senate seat.

At the before event in Wisconsin, Biden was heckled by a member of the audience, whom he referred to as an "fool." The heckler was escorted from the occasion by Magic formula Company.