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Sunday, November 15, 2026Nov 15

How Biden and McCarthy struck a debt limit deal and staved off a catastrophe

Speaker of the House Kevin McCarthy, R-Calif., walks to the House chamber at the Capitol in Washington, Wednesday, May 31, 2023. as the House moves toward passage of the debt limit bill. (AP Photo/Jose Luis Magana)
Speaker of the House Kevin McCarthy, R-Calif., walks to the House chamber at the Capitol in Washington, Wednesday, May 31, 2023. as the House moves toward passage of the debt limit bill. (AP Photo/Jose Luis Magana)

WASHINGTON (AP) — It was advice that Mitch McConnell had offered to Joe Biden once already: To resolve the debt limit standoff, he needed to strike a deal with House Speaker Kevin McCarthy — and McCarthy alone. But after the first meeting of the top four congressional leaders with the president in early May, the Senate minority leader felt the need to reemphasize his counsel.

After returning from the White House that day, McConnell called the president to privately urge him to “shrink the room” – meaning no direct involvement in the talks for himself, Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.

That, McConnell stressed to Biden, was the only way to avert a potentially economy-rattling default.

A week later, Biden and McCarthy essentially adopted that path, tapping a handful of trusted emissaries to negotiate a deal that would lift the debt limit. It was a turning point in an impasse that, until then, seemed intractable.

Having lived through the debacle of a 2011 debt limit fight, Biden would not entertain any concessions for a task that he viewed as Congress’ fundamental responsibility. But McCarthy, prodded by conservatives insisting on sweeping changes to federal spending, was intent on using the nation’s borrowing authority as leverage even if it edged the U.S. closer to default.