The White House is not taking the possibility of a short-term debt ceiling extension off the table as it weighs options to avoid the country defaulting on its debts as President Biden prepares to meet Speaker Kevin McCarthy (R-Calif.) on the matter next week. On 5/4/2023, Office of Management and Budget Director Shalanda Young told reporters at the White House that extending the debt ceiling was an option. “I’m sure one of the things on the table we will have to work through is how long. I’m not going to take anything off the table,” Young said when asked about a possible short-term extension.

Q: pretty clearly here no one seems to be budging A: our job to keep coming to you, go to American people
Reporter: You’ve laid out the stakes pretty clearly here, but so far, no one seems to be budging. So I wonder, especially given, you know, the clock really ticking at this point, we are just a few weeks away, at what point do you start planning for default to actually happen? Have those plans already started? Are you talking with companies?

MS. YOUNG: Look, we believe — and this might be Shalanda the optimist — and I’ve worked with a lot of those members of Congress in my nearly 15 years on the Hill — they all know the devastating results of default. They all — many of them were around in 2011 when our full faith and credit was reduced. And so, I have hope that we will find a path to avoid default, but it’s our job to keep coming to you, go to the American people, and make sure people understand what this debate is about. It’s not complicated.

So this is what we’re doing to make sure we keep that drum beat up. And I do believe the majority of the members of Congress know that is the wrong path to go down. Look, we saw the partisan process play out; now we need to pivot to a bipartisan process. That’s the only thing that’s going to make it to the President’s desk and avoid default.

OMB Dir Shalanda Young: “Of Course We’re Concerned” With Credit Downgrade Since Biden Wont Negotiate
Reporter: You mentioned the U.S. credit rating, which was downgraded the last time we got this close to default in 2011. How concerned are you that we could see a repeat of that; that the U.S. could be downgraded if this comes down to the wire even if default is ultimately avoided?

MS. YOUNG: You’ve heard Karine talk about our economists’ report. Clearly, any of those things should concern any American. They’re going to be paying more for — for loans in this country. Is it going to take their cost of living any higher? Of course, we’re concerned. We’re calling on the reasonable people in this town to do the right thing. Look, a bill tomorrow — this is what we don’t talk about — Congress could put a bill on the floor tomorrow

Biden Budget Director Shalanda Young Can’t Say If Biden Supports Any Limits On Spending
Reporter: Let me ask you a follow-up on the second, separate part of the spending question. The President — we’ve heard him say it a couple of times now. He said it on April 19th, when he went to Accokeek, Maryland. He said that the — the House Speaker talks “about limiting spending. All for that, man. Let’s limit spending.” That’s the President’s quote.

What does he mean when he says that? Is he — is he serious about limiting spending? Or is he mocking the House Speaker? Is he — is he suggesting that there might be some cuts he would be amenable to? What is — what does he mean when he says that?

MS. YOUNG: So I don’t know the context of how the President answers this. What I will say is I’ve talked to the President a lot about spending priorities. This President has made clear — you heard in my topper — there is spending we like not to talk about: spending on Big Pharma, spending on Big Oil.

Q: no deal no one is blinking, would Biden invoke the 14th Amendment? A: It is Congress’s duty
Reporter: And yet, at this point, no one is blinking. So if we get to May 30th and there’s still no deal, would the President entertain the possibility of invoking the 14th Amendment?

MS. YOUNG: We continue to have the position that this is Congress’s duty to do.
Reporter: So it’s not off the table?
MS. YOUNG: It is Congress’s duty to do, and we will continue to say that.

Q: Is there going to be a counteroffer on spending? A: many Republicans not vote for bills
Reporter: Will the President go to the meeting next week with Republicans with a counteroffer on appropriations — next Tuesday’s meeting about the debt limit — since they’re trying to merge both? Is there going to be a counteroffer on spending?

MS. YOUNG: So you — you’ve heard my outline and what the President will deliver. Look, I have a question for you. We’re skipping a few steps. This bill hasn’t gone through the Senate. I’ve done appropriations a long time. Something tells me that

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Q: pretty clearly here no one seems to be budging, does Biden support limiting spending?