President Joe Biden has not ruled out invoking the 14th Amendment to prevent the US from defaulting on its debts as early as June 1, according to his recent interview with MSNBC. The divided US Congress is running out of time to raise the federal government’s $31.4 trillion debt ceiling, with the Treasury Department warning that it could be unable to pay its bills.
Legal experts have suggested that Biden could use Section Four of the 14th Amendment, which states that the “validity of the public debt of the United States… shall not be questioned,” to avoid a crisis. However, this option has been dismissed by many as a last-ditch solution that is unlikely to survive a court challenge and could unsettle financial markets.
Biden will meet with top Republicans and Democrats from Congress next week to address the federal debt ceiling issue, but both sides hold opposing positions, with Biden calling for a borrowing limit increase without conditions, and Republican House Speaker Kevin McCarthy insisting on spending cuts to address the growing budget deficit.