Biden lashes Republicans for "manufactured crisis" over debt limit. What he said in NY

VALHALLA - President Joe Biden showed no signs of blinking in his debt standoff with House Republicans on Wednesday, blasting their demands during a Hudson Valley stop and warning of economic calamity unless they relent.

Biden, speaking to a pumped-up crowd at SUNY Westchester Community College, condemned the spending cuts Republicans want as conditions for raising the nation's debt limit, framing them as terms for an impossible choice: either slash funding for important programs or careen the nation into the first debt default in its history.

"We shouldn't even be talking about this situation," Biden said, before describing the incredulity of other world leaders at the country's looming predicament. "Because if we default on our debt, the whole world is in trouble. This is a manufactured crisis."

"There should be no question about America's ability to pay its bills," he added. "America's the strongest economy in the world, and we should be cutting spending and lowering the deficit without a needless crisis, in a responsible way."

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The speech came just three weeks before the nation is due to reach a precipice: the inability to pay its debts unless Congress lifts the current limit of $31 trillion. Biden has insisted on raising that level without conditions, putting him at an impasse with Republicans who won a narrow majority in the House in November's elections.

They staked out their position last month with a bill that would lift the debt ceiling for less than a year, in return for spending cuts and policies they want. Almost every Republican - including all from New York - supported the bill; all Democrats voted against it.

Their proposal would cut spending to 2022 levels in the next budget due this fall, effectively erasing what would be two years of increases. Because it would spare military spending, the White House has warned that domestic spending would have to be cut by 22% overall to satisfy the GOP plan, forcing deep cuts in vital programs.

The economic domino effect of a debt default could cost roughly 398,000 jobs in New York and 7.4 million nationwide, the Biden administration said Wednesday, citing a Moody's Analytics report released a day earlier.

Biden's speech took place on the edge of the congressional district of Rep. Mike Lawler, a Republican freshman from Rockland County who attended and spoke briefly in private with the president before his 34-minute address.

Lawler told reporters afterward that the president was cordial to him and told him he hadn't come to the area to put pressure on him. He said Biden listened to his concerns about the budget and the migrant crisis that recently spilled over into Rockland.

"We need to be realistic about this," Lawler said about the debt standoff. "We need to get our fiscal house in order."

Biden noted Lawler's presence at the beginning of his speech and thanked him for coming.

"Mike's on the other team," Biden joked, but complimented Lawler as the type of Republican he used to work across the aisle with when he was in Congress. "He's not one of these MAGA Republicans, which I'm going to talk a little bit about. I don't want to get him in trouble by saying anything nice about him."

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Biden rode a helicopter back to New York City after his speech, landing at a Wall Street pad to attend two campaign fundraisers in Manhattan.

Joining Biden on Air Force One for the north trip from Washington was U.S. Sen. Kirsten Gillibrand of New York and Rep. Jamaal Bowman, the Yonkers Democrat who represents much of Westchester. Both of them, along with Gov. Kathy Hochul, then took the stage before Biden to give remarks about the looming debt crisis.

Gillibrand warned a roaring crowd of teachers in the audience that "your retirement accounts will go down the drain" if the nation defaults, and accused Republican House Speaker Kevin McCarthy of "putting the full faith and credit of the entire American economy at risk."

"So let's cut the crap, Speaker McCarthy!" she said. "Pay the debt. Make sure that our full faith and credit is good!"

Bowman charged up the crowd with a bare-knuckled speech, saying of Republicans: "They are literally trying to hold the global economy hostage while they feign as if they are fiscally responsible. They are not! We raised the debt limit three times under President Trump."

What's next for debt bill?

The Republican debt bill included a litany of policy demands. Among other things, their conditions would stop Biden from erasing college-loan debt; impose work requirements on Medicaid recipients; cancel tax credits for electric cars and solar and wind energy; and allow more gas and oil drilling.

The bill also would rescind pandemic relief funds that haven't been used and pull back a recent funding increase for the Internal Revenue Service. Republicans say their full proposal would save $4.5 trillion over 10 years.

Republicans have blasted Biden for refusing to negotiate with them on the debt limit. Biden, who insists the ceiling be raised without conditions before starting budget talks, met Tuesday at the White House with four congressional leaders from both parties, with no apparent progress in the standoff with McCarthy and his caucus.

Chris McKenna covers government and politics for The Journal News and USA Today Network. Reach him at cmckenna@gannett.com.

This article originally appeared on New York State Team: Biden in Westchester visit rips Republicans over debt ceiling limit