The President and Speaker will discuss the matter this week.

Two weeks ago, the United States officially hit the debt limit. This means that, without some manner of action like an official limit increase, the country could default on its debts, which could lead to a government shutdown among other problems. The usual solution to this problem would be to simply increase the limit, but recently-appointed Speaker of the House Kevin McCarthy has declined a simple fix without enacting spending cuts.

McCarthy has said that Republicans want commitments to spending reductions in exchange for raising the debt limit but has been unclear about what exactly the GOP would be willing to cut. https://t.co/KnXljHMs9H

— Yahoo News (@YahooNews) January 30, 2023

In order to reach a consensus on the matter, McCarthy is scheduled to have a meeting this Wednesday with US President Joe Biden on how to raise the limit while also enacting the cuts his party wants.

“I know the president said he didn’t want to have any discussion (on cuts), but I think it’s very important that our whole government is designed to find compromise,” McCarthy told CBS. “I want to sit down together, work out an agreement that we can move forward to put us on a path to balance — and at the same time not put any of our debt in jeopardy at the same time.”

House Democrats' leader Hakeem Jeffries tells NPR the looming national debt crisis will be resolved without his party submitting to demands by Republicans who want to tie spending cuts to a debt limit hike.

"We are not going to pay a ransom note."https://t.co/Sy93zxA22N

— NPR (@NPR) January 27, 2023

“The President will ask Speaker McCarthy if he intends to meet his Constitutional obligation to prevent a national default, as every other House and Senate leader in US history has done,” a White House spokesperson said on the matter. “He will underscore that the economic security of all Americans cannot be held hostage to force unpopular cuts on working families.”