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Tag: Speaker Kevin McCarthy

  • Kevin McCarthy Finally Defies the Right

    Kevin McCarthy Finally Defies the Right

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    The speaker made a last-minute reversal to avert a government shutdown. It could cost him his job.

    Anna Moneymaker / Getty

    Updated at 9:02 p.m. ET on September 30, 2023

    For weeks, Speaker Kevin McCarthy seemed to face an impossible choice as he haggled over spending bills with his party’s most hard-line members: He could keep the government open, or he could keep his job. At every turn, McCarthy’s behavior suggested that he favored the latter option. He continued accepting the demands of far-right Republicans to deepen spending cuts and dig in against the Democrats, making a shutdown at tonight’s midnight deadline all but a certainty.

    Read: Why Republicans can’t keep the government open

    With just hours to go, however, the speaker abruptly changed course, defying his conservative tormentors and partnering with Democrats to avert a shutdown. The House this afternoon overwhelmingly approved a temporary extension of federal funding. The Senate passed the bill in the evening, putting off a shutdown for at least 45 days and buying both parties more time to negotiate spending for the next fiscal year.

    The question now is whether McCarthy’s pivot will end his nine-month tenure as speaker. By folding—for now—on the shutdown fight, he is effectively daring Representative Matt Gaetz of Florida and other hard-line Republicans to make good on their threats to depose him. “If somebody wants to remove [me] because I want to be the adult in the room, go ahead and try,” McCarthy told reporters before the vote. “But I think this country is too important.”

    The stopgap bill includes disaster-relief money sought by both parties, but McCarthy refused to add $6 billion in Ukraine aid that the Biden administration and a bipartisan majority of senators wanted. The Senate had been on the verge of passing its own extension that included the Ukraine money, but after the House vote it was expected to accept McCarthy’s proposal instead. Whether House Republicans agree to include Ukraine assistance in the next major spending bill is unclear, but Democrats and Senate Minority Leader Mitch McConnell are likely to make an aggressive push for it.

    McCarthy’s surprising about-face set off a wild few hours in the Capitol. Democrats were caught off guard and stalled for time to read the new bill, unsure if Republicans were trying to sneak conservative policy priorities into the legislation without anyone noticing. (In the end, only a single Democrat voted against it.) Representative Jamaal Bowman of New York, a second-term Democrat, caused the evacuation of an entire House office building when he pulled a fire alarm just before the vote, in what Republicans said was a deliberate—and possibly criminal—effort to delay the proceedings. (Bowman’s chief of staff said that the representative “did not realize he would trigger a building alarm as he was rushing to make an urgent vote. The Congressman regrets any confusion.”)

    Annie Lowrey: How to end government shutdowns, forever

    On the right, the criticism of McCarthy was predictable and immediate. “Should he remain Speaker of the House?” one of his Republican opponents, Representative Andy Biggs of Arizona, tweeted after the vote, seemingly rhetorically. Yet to more moderate Republicans, the speaker’s decision was a long time coming. McCarthy’s months-long kowtowing to the right had frustrated more pragmatic and politically vulnerable House Republicans, a few of whom threatened to join Democratic efforts to avert, or end, a shutdown. But many Republicans are even more furious at Gaetz and his allies. “Why live in fear of these guys? If they want to have the fight, have the fight,” former Representative Charlie Dent of Pennsylvania, a moderate who served in the House with McCarthy for 12 years, told me. “I don’t understand why you would appease people who are doing nothing but trying to hurt and humiliate you.”

    This morning, the speaker finally came to the same conclusion. His move to relent on a shutdown only kicks the stalemate over federal spending to another day. Now it’s up to House Republicans to decide if McCarthy gets to stick around to resolve it.

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    Russell Berman

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  • Why Republicans Can’t Keep the Government Open

    Why Republicans Can’t Keep the Government Open

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    Yesterday was not a good day for House Republicans or for their struggling leader, Speaker Kevin McCarthy. In the morning, McCarthy was forced to scrap a procedural vote on a GOP proposal to avert a government shutdown that will commence at the end of this month if Congress doesn’t act. In the afternoon, a handful of conservatives tanked McCarthy’s bid to advance legislation funding the Pentagon.

    The failure of the proposal to prevent a shutdown was the more ominous defeat, both for Republicans and for the country. Yet even if McCarthy manages to pass a version of this, it will almost certainly be an exercise in futility. For starters, it would fund the government for a mere 30 additional days. And its basic provisions—cutting spending by 8 percent for all but the Defense and Veterans Affairs Departments, restarting construction of the southern border wall, cutting off pathways for asylum seekers—will likely be stripped out by Senate Democrats.

    Despite the GOP’s evident dysfunction, Representative Kelly Armstrong of North Dakota was in a chipper mood when he called me from the Capitol. The McCarthy ally was scurrying between meetings in an effort to help resolve the latest crisis threatening the speaker. “We’re a long way from landing the plane, but there are really productive conversations going on,” Armstrong told me. If the plane represents, in Armstrong’s metaphor, a functioning federal government, then House Republicans are still hovering at about 30,000 feet, with the runway coming rapidly into view.

    Watch: The Republicans threatening to shut down the government

    The Democrats who run the Senate aren’t involved in the “productive conversations” Armstrong was referencing. If they were, McCarthy might already have lost his job. Before he can negotiate with the Democrats, the speaker must broker a peace among the warring factions of his own party, who cannot even agree on an opening offer. Groups representing the conservative Freedom Caucus and the more pragmatic Main Street Caucus announced a deal on Sunday to support the 30-day extension, with spending cuts and border restrictions attached. But almost immediately, hard-liners rejected the proposal as insufficiently austere. Led by Representative Matt Gaetz of Florida, several of these Republicans are threatening to oust McCarthy if he caves to Democrats on spending, and a few of them are openly itching for a government shutdown.

    Any five Republicans can torpedo proposals that don’t have Democratic support—as five GOP lawmakers did yesterday in blocking the defense bill—and any five could topple McCarthy by voting along with Democrats for a procedural tool known as a motion to vacate the chair. This has effectively made him a hostage of his caucus, with precious little room to maneuver.

    Even the relatively optimistic Armstrong acknowledged the difficulty of McCarthy’s position. “It’s a pretty untenable argument to say you don’t have enough Republican votes to pass anything and you can’t negotiate with Democrats on anything,” Armstrong told me.

    McCarthy has tried many times to shake off threats to his speakership, alternately daring members like Gaetz to make a bid to oust him and pointing out that with such a narrow majority, any other Republican replacement would find themselves in the same unenviable position. I asked Armstrong whether McCarthy should simply ignore the hard-liners in his conference and strike a deal with Democrats to keep the government open, come what may. “I’m not sure he should yet,” he said.

    House Republicans have received hardly any backing from their brethren in the Senate, who have shown no appetite for a shutdown fight and have been more willing to uphold the budget deal that McCarthy struck with President Joe Biden in the spring. By bowing to conservative demands for deeper spending cuts, the speaker is reneging on the same agreement, which allowed Congress to raise the debt ceiling and avoid a catastrophic default. “I’m not a fan of government shutdowns,” Senate Minority Leader Mitch McConnell told reporters yesterday. “I’ve seen a few of them over the years. They have never produced a policy change, and they’ve always been a loser for Republicans.”

    For now, McCarthy allies such as Armstrong are adamant that this spending battle must result in a change in administration policy. They have zeroed in on the border, seeing an opportunity to force Biden’s hand and take advantage of an issue on which even some Democrats, such as New York City Mayor Eric Adams, have been critical of the president. “If we can’t use this fight to deal with the single most pressing national-security issue and humanitarian issue of our time, then shame on us,” Armstrong said.

    Read: Kevin McCarthy is a hostage

    Yet House Republicans have found themselves isolated, and bickering over legislation that—like most of their proposals this year—stands no chance of becoming law. A bipartisan majority in the Senate is likely to simply return a temporary spending bill to the House without the conservative priorities, perhaps with additional funding to aid Ukraine in its war with Russia. What then? I asked Armstrong. “I would shut it down,” he replied.

    Democrats in the House, meanwhile, have watched the unfolding GOP drama with a mix of schadenfreude and growing horror. The Republican infighting could help Democrats win back a House majority next year. But a shutdown would not reflect well on either party, and voters could end up blaming Biden as well as the GOP for the fallout. Hundreds of thousands of federal workers would be furloughed, and millions of Americans might have to wait longer for Social Security checks and other needed benefits. “The rest of the world looks at us like we’re incompetent and dysfunctional,” Representative Gerry Connolly, a Democrat whose Northern Virginia district includes thousands of federal workers, told me. “How do you explain to our European allies that we can’t fund our government?”

    Connolly is in his eighth term and, like America’s allies, has seen this brinkmanship play out several times before. He told me that whereas earlier in the month he thought Congress had a 50–50 chance of keeping the government open, he now puts the odds of a shutdown at 90 percent. “Sometimes you feel like we’re going to avert this cliff, and then there are times that you go, ‘No, we’re going off this cliff,’” Connolly said. “This one feels like we’re going off the cliff.”

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    Russell Berman

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  • The Case for Debt-Ceiling Optimism

    The Case for Debt-Ceiling Optimism

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    As the government careens toward the brink of default without a deal to lift the debt limit, an unlikely source of reassurance has emerged.

    “I think everyone needs to relax,” Mitch McConnell told reporters on Tuesday in his home state of Kentucky. “The country will not default.” The longtime Republican leader, who once boasted of being the Senate’s “grim reaper,” isn’t known for his soothing bedside manner. His equanimity was hard to reconcile with the vibes emanating from the Capitol on that particular day, where House Republican negotiators were accusing their Democratic counterparts in the White House of intransigence and insisting that the sides remained far apart.

    The Treasury Department has said that if Congress does not raise the nation’s borrowing limit, the government could, as early as June 1, default on its debt for the first time. The economic repercussions could be catastrophic—first a market crash, then, economists believe, a recession. Because the House and Senate would need at least a few days to approve any agreement that President Joe Biden strikes with Speaker Kevin McCarthy, the real deadline could be even sooner.

    But McConnell, who has spent nearly half of his 81 years on Earth in the Senate, has seen more than a few difficult negotiations. Despite all the histrionics—the censorious sound bites, the “red lines” each side has drawn, the breakdowns and “pauses”—the talks thus far haven’t looked all that different from past Washington deadline dances, which tend to end with a deal. “This is not that unusual,” McConnell said.

    Read: Why Biden caved

    The public feuding is actually a good sign, and so, in a way, is the delay. “They need this to run to the very last minute,” Brendan Buck, a former aide to Speakers John Boehner and Paul Ryan, told me. As Buck sees it, the theatrics between GOP and Democratic leaders is a necessary precursor to a deal, because it shows partisans on their respective sides that they fought as hard as they could before reaching a compromise.

    Biden and McCarthy are trying to find a solution that can pass both a Republican-controlled House and a Democratic-controlled Senate. A quick-and-tidy agreement is likely to be viewed suspiciously by both parties, and particularly the GOP’s hard-right faction, which made McCarthy sweat out 15 votes to become speaker. “There’s no way McCarthy could have walked in two weeks ago, had a one-hour meeting with the president, and come out and said, ‘We have a deal,’” Matt Glassman, a former congressional aide who is now a senior fellow at Georgetown University’s Government Affairs Institute, told me. “That would be just deadly for him with his conference.”

    Today’s impasse has drawn comparisons to the debt-ceiling negotiations in 2011 between Boehner and then-President Barack Obama. Those talks featured even more drama, including the sudden collapse of a “grand bargain” and, later, a worried prime-time address to the nation from Obama. Even though the two parties have since drifted further apart (mostly thanks to the GOP’s move rightward), the gap between them in these negotiations is much smaller.

    Back then, Obama was pushing aggressively for tax increases, while Boehner wanted several trillion dollars in spending cuts, including major changes to entitlement programs. Biden initially took a harder line this time, refusing for months to engage McCarthy in negotiations over the debt ceiling. But since backing off that position, he’s made only half-hearted—and swiftly rejected—attempts to get McCarthy to raise taxes or make any kind of policy concession. To the frustration of progressives, he’s even seemed willing to tighten work requirements for people receiving federal safety-net benefits. Republicans, for their part, have agreed not to seek cuts to Medicare or Social Security. “I don’t actually think this is that difficult of a deal to reach,” Buck said. Getting that deal through the House and the Senate, he said, will be more difficult, which is why both Biden and McCarthy will need to save the biggest deadline pressure for the votes themselves.

    Conor Clarke: There is no constitutional end run around the debt ceiling

    By most accounts, the parties are haggling chiefly over whether to freeze government spending at current levels—Biden’s latest offer—or cut as much as $130 billion by reverting to 2022 spending, as Republicans have proposed. Republicans want to exempt the Defense Department from any cuts, which is a sticking point for Democrats.

    Considering the yawning philosophical differences between the parties, that’s not much of a gap. “Compromising over numbers isn’t that hard,” Glassman said. “It’s not like compromising over abortion.”

    Look closer and there are other reasons for optimism. Although some of McCarthy’s members are urging him to hold fast to the conservative provisions of the debt-ceiling bill Republicans narrowly passed last month, the speaker has moved off those demands. Even the blowups have been timed, either intentionally or coincidentally, to avoid spooking investors and causing stock markets to slide. The White House meetings between McCarthy and Biden, for example, have all occurred after the markets closed, and the biggest breakdown in the talks (so far) happened over the weekend before negotiations resumed on Monday.

    Republicans have many reasons for not causing a stock-market crash; the simplest is that they and many of their constituents would stand to lose a lot of money. Another possible reason is that party leaders, and McConnell especially, seem to recognize that a panic over the debt ceiling is not in their political interest and could undermine their negotiating position.

    McConnell is not a soothsayer—his prediction that Donald Trump’s grip on the GOP would loosen, for example, has not exactly panned out. Nor is his confidence that the country will avert default merely a forecast from a disinterested observer. If McConnell is saying it, he must think it benefits Republicans for him to do so.

    But even a self-interested assurance is one more indication of hope, a sign that Republicans want to prevent economic disaster. A debt-ceiling deal between Biden and McCarthy remains more likely than not. It might just take a few more days of posturing and setbacks before it happens.

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    Russell Berman

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  • Why Biden Caved

    Why Biden Caved

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    The White House and Congress have not made much progress in their talks to avert an unprecedented, and potentially calamitous, national default that could occur as soon as early June. But on the most fundamental point of dispute, President Joe Biden has already caved: He’s negotiating with Republicans over the debt ceiling.

    For months, the president’s ironclad position has been that the debt ceiling is not a bargaining chip. No longer would Democrats allow Republicans to hold hostage the nation’s creditworthiness and economic prestige. Paying the government’s bills by raising the U.S.’s statutory borrowing limit would be nonnegotiable. As recently as Friday, White House Press Secretary Karine Jean-Pierre declared without equivocation, “We are not going to negotiate over the debt limit.”

    But Biden himself has dropped the pretense that his weeks-long budget discussions with the GOP have not revolved around the debt ceiling. Asked specifically about the debt ceiling on Sunday—in anticipation of a second White House visit by congressional leaders, planned for today—Biden told reporters, “Well, I’ve learned a long time ago, and you know as well as I do: It never is good to characterize a negotiation in the middle of a negotiation.”

    Read: This debt crisis is not like 2011’s. It’s worse.

    So there you go: It’s a negotiation. Exactly what the two parties are discussing is only starting to become clear. According to various reports, a deal to avert default could include some changes to permitting rules that would speed up domestic-energy production; a revocation of unused COVID funds; additional work requirements for some federal programs (although the president has ruled out any modifications to Medicaid); and, most significant, a cap on overall federal spending.

    The Biden administration still claims to be haggling only over the budget, not the debt ceiling. “The president has been emphasizing for months that he’s eager to have budget negotiations,” a White House official, who requested anonymity to explain the administration’s somewhat tortured position, told me. “That’s of course different from avoiding default, which is nonnegotiable.”

    Biden’s no-negotiation stance was born of past experience, when in 2011 Republicans dragged out debt talks with the Obama administration to the brink of default, resulting in a downgrade of the U.S.’s credit rating. But Biden’s approach this time is proving to be neither realistic nor sustainable, especially after Speaker Kevin McCarthy defied expectations last month by getting a budget-slashing debt-ceiling bill through his narrow House majority.

    Crucially, Biden failed to win strong support for his strategy from House centrists. Democrats had been hoping to persuade Republicans representing swing districts to buck McCarthy and help pass a debt-ceiling increase. But those lawmakers have stuck by the speaker. Complaining about a lack of outreach from the White House, they instead criticized Biden over his refusal—until recently—to negotiate. With Republicans unwilling to budge, Democratic centrists began to lose patience with Biden’s approach and conducted their own bipartisan negotiations.

    “We believe it’s very important in general that both sides sit down and try to work this out,” Representative Josh Gottheimer of New Jersey, the Democratic co-chair of the bipartisan Problem Solvers Caucus, told me before Biden’s first meeting last week with McCarthy and other top congressional leaders. “This can’t become a part of a political back-and-forth as the country drives off the cliff.”

    Read: “We used to be called moderate. We are not moderate.”

    Last month the Problem Solvers offered their own plan, which they presented as a fallback option that could win bipartisan support should Biden and McCarthy fail to strike a deal in time. The proposal would immediately suspend the borrowing limit through the end of the year to buy time for broader budget talks. If Congress agrees to unspecified budget limits and creates a fiscal commission to tackle the nation’s long-term deficits and debt, the plan stipulates that the debt ceiling would be increased through the 2024 elections.

    The compromise has yet to gain momentum, but its release seemed to undermine the Biden administration’s insistence that Democrats would not tie a debt-ceiling increase to spending reforms. “We didn’t try to fill in every blank, but we thought this was a really good framework to become the meat of the deal,” Representative Scott Peters of California, a Democrat who helped write the Problem Solvers plan, told me.

    It could still prove handy. Biden struck an optimistic note on Sunday, telling reporters, “I really think there’s a desire on [Republicans’] part, as well as ours, to reach an agreement, and I think we’ll be able to do it.” But McCarthy is sounding more dour. “I still think we’re far apart,” he told NBC News yesterday morning. The speaker said that Biden “hasn’t taken it serious” and warned that an agreement needed to happen by this weekend in order for the House and Senate to have time to debate and pass it by early June.

    Whether a Biden-McCarthy deal could even get through the House is also in question. Democrats have largely stayed quiet on Biden’s evident capitulation to Republicans, and the talks initially did not stir a backlash. But that may be changing as the president openly considers concessions that would be anathema to progressives, such as the possibility of adding work requirements to social safety-net programs. Still, the lack of a credible primary challenge to Biden’s reelection has helped give him room to negotiate, as Democrats fret about the effect that a default could have on the president’s already tenuous public standing.

    “As long as he continues to try to avoid default, and avoid the middle class having to pay the cost for it, then he’s in the position that the majority of the electorate wants him to be,” Jesse Ferguson, a longtime Democratic strategist, told me.

    McCarthy has much more to worry about. He traded away his own job security to win the speakership in January, agreeing to rule changes that would make it easier for hard-right conservatives to depose him. A debt-ceiling deal that fails to secure deep enough spending cuts or policy concessions from Democrats could threaten his position. “Default can be avoided. The question is whether Kevin McCarthy could withstand putting that bill on the floor,” Ferguson said.

    The speaker has secured no substantive commitments from Biden, nothing specific that he can sell to his party. But McCarthy has elicited one major concession from the president, which serves as a prerequisite for any others to come. Biden has come to the table with default in the balance, and he’s negotiating on the GOP’s terms.

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    Russell Berman

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  • This Debt Crisis Is Not Like 2011’s. It’s Worse.

    This Debt Crisis Is Not Like 2011’s. It’s Worse.

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    On its surface, the unfolding debt-ceiling crisis looks a lot like the confrontation in 2011 between congressional Republicans and then-President Barack Obama. Once again, a new GOP majority in the House is using the threat of a national default as leverage to force a first-term Democratic president to agree to spending cuts in exchange for lifting the federal borrowing limit. A first-ever default could crash the markets and trigger a recession. But, as in 2011, the two parties remain far apart, with a deadline to act approaching rapidly.

    Eric Cantor knows the feeling well. Twelve years ago, he was the House majority leader deputized by then-Speaker John Boehner to negotiate an agreement with Joe Biden, who was Obama’s vice president at the time. Cantor left Congress in 2014 after a stunning primary defeat that presaged the GOP’s anti-establishment, anti-immigration lurch toward Donald Trump two years later. He’s now a senior executive at a Wall Street investment bank.

    I called him up this week to ask what he had learned from the 2011 negotiations and how he sees today’s fight going. He warned that the risks of failure—and with it, economic calamity—are significantly greater this time around.

    Read: The logic behind Biden’s refusal to negotiate the debt ceiling

    Cantor and Biden failed to strike a deal on their own in 2011; that task ultimately fell to Biden and Senate GOP Leader Mitch McConnell. But Cantor told me he was impressed with Biden’s willingness to bargain: “He was very much in the mode of negotiating, compromising.”

    Not this time—Biden has rebuffed pleas from Speaker Kevin McCarthy for one-on-one negotiations. “President Biden is not the same person as Vice President Biden was,” Cantor said, a bit ruefully. Nor has Biden empowered anyone in his administration to bargain at all.

    “They’ve not negotiated a darn thing,” Cantor said.

    In 2011, Obama engaged with Republicans months in advance of the fiscal deadline, and the talks between Cantor and Biden, along with separate negotiations between Obama and Boehner, helped set parameters for the agreement that materialized when the nation was on the brink of default.

    The present lack of negotiations is likely a direct result of how things went back in 2011. Though both sides came to an agreement eventually, the near miss still caused a stock-market slide and the downgrading of the U.S. credit rating. When the U.S. bumped up against the debt ceiling again later in the Obama presidency, the administration was less inclined to negotiate—and a chastened GOP allowed the limit to be lifted without a fight. The lesson Democrats drew from that experience was never again to concede to the Republican premise that increasing the borrowing limit should be subject to legislative haggling.

    Biden’s no-negotiation stance, however, might not be sustainable. On Monday, Treasury Secretary Janet Yellen informed congressional leaders that the country would run out of fiscal wiggle room—afforded by the use of “extraordinary measures” that stretch federal funds—as soon as June 1. That deadline is earlier than many people in Washington expected, and Yellen’s warning injected fresh urgency into the effort to find a way out of the crisis. In response, Biden summoned McCarthy, McConnell, and their Democratic counterparts to a White House meeting next week.

    In 2011, McCarthy was one rung beneath Cantor in the House GOP hierarchy. Now, as speaker, he’s operating with a much thinner margin than Boehner and Cantor, who had more than 20 votes to spare. The GOP’s five-vote majority has less leverage, but it is more dug-in against the Democrats, and the speakership that McCarthy fought so hard to secure could be at risk if he were to allow the debt ceiling to be raised without extracting sufficient budget cuts or other concessions. The moderate dealmakers in the House Republican Conference have all but vanished. Boehner was ultimately forced out in 2015 by a conservative revolt, but he did not face the threat of an ouster that now hangs over McCarthy.

    Although McCarthy was able to muster enough votes last week to pass an opening bid through the House—“a huge victory,” Cantor told me—he’s unlikely to secure the same level of budget cuts that Republicans did in 2011. Obama and Boehner had traded proposals for entitlement cuts and tax increases, and the deal Congress eventually passed triggered $1.2 trillion in spending reductions over a 10-year period. Under pressure from former President Donald Trump, McCarthy isn’t even pushing this time for cuts to Medicare or Social Security. The likeliest solution, according to potential congressional dealmakers, is an agreement that would merely slow the growth of federal spending, not reverse it. “You’re just not going to move the needle as far,” Cantor said.

    Cantor remains in touch with McCarthy; the two, along with the Republican who succeeded Boehner as speaker, Paul Ryan, were once a conservative triumvirate known as the “Young Guns” (they were already in their 40s, but this is Congress), who rose quickly in the House GOP. When I asked him whether it was possible for McCarthy to emerge victorious in the eyes of his party, Cantor seemed doubtful. “Look, he’s got a very, very slim majority,” he said. “And given where conservative media and social media is on the issue, it’s just hard to be able to create a situation where you can declare a win and have everyone go along with it.”

    Annie Lowrey: The trillion-dollar coin might be the least bad option

    For now, Cantor said, McCarthy is doing what he needs to do to give himself space to negotiate. “Kevin has demonstrated a will to fight, and I think that’s the most important thing right now for members to see—he’s willing to go to bat for them and fight,” he said. “So he comes into this with a fair amount of capital to work with.”

    Biden is also in fighting mode at the moment, in contrast to his bargaining mode in 2011. Cantor argued that “ironically,” Biden had more authority to hammer out a deal when he was Obama’s lieutenant than he does now. “He’s captive of the extreme left and the progressives in his party,” he said.

    This is mostly spin from a Republican who remains, even in his political retirement, a party loyalist. And Biden would surely dispute the suggestion that he would cut a deal with Republicans if left to his own devices; he came away from the 2011 experience with the same determination as others in his party not to negotiate again over the debt ceiling. But Cantor’s point is that because progressives are more ascendant now than they were then, Biden has less room to maneuver, especially as he launches a reelection bid for which he’ll need the left’s enthusiastic support.

    Cantor offered a couple of scenarios for how Biden and McCarthy could avert a default. The most likely involves Washington’s favorite fallback, the punt: Republicans would agree to a short-term increase in the debt ceiling in exchange for Biden committing to serious fiscal negotiations later in the year, when both sides would face a harder deadline. They could also reach a broader agreement in the next few weeks, but Cantor did not sound particularly hopeful. “I still don’t think we go into default,” the veteran of congressional brinkmanship told me, “but I think the path is certainly narrower, and the options available to either side are narrower.”

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    Russell Berman

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  • Nancy Pelosi: ‘Follow the Money’

    Nancy Pelosi: ‘Follow the Money’

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    The former speaker of the House discussed Silicon Valley Bank, January 6 revisionist history, the coming election, and more in a South by Southwest interview focused on money and greed.

    Travis P Ball / Getty for SXSW

    House Speaker Emerita Nancy Pelosi’s message at the annual South by Southwest festival could be summarized in three words: Follow the money.

    Pelosi uttered that specific phrase—and similar versions of it—several times during her interview with Evan Smith, a contributing writer at The Atlantic, as part of the magazine’s Future of Democracy summit this morning in Austin, Texas.

    Pelosi, who represents California’s 11th congressional district, began by discussing the recent collapse of Silicon Valley Bank and the anxiety sweeping through not only her home district but the tech and financial industries as a whole. “I don’t think there’s any appetite in this country for bailing out a bank,” she said. “What we would hope to see by tomorrow morning is for some other bank to buy the bank.” She said there were multiple potential buyers, but she couldn’t reveal their names. Pelosi pointed out that former President Donald Trump had authorized the reduction of certain Dodd-Frank protections that had been instituted following the 2008 financial crash: “If they were still in place and the bank had to honor them, this might have been avoided,” she offered. Rather than repeating our recent history and using taxpayer money to rescue the failed institution, Pelosi said the focus should be on protecting depositors and small businesses at risk of closing or not making payroll. “We do not want contagion,” she said.

    Franklin Foer: You’ll miss gerontocracy when it’s gone

    Pelosi pointed to money—the reckless use and exploitation of it—as the root of virtually every problem facing America and the world today. Whether the potential fallout of a failed bank like SVB or the rise of autocracy around the world, it all comes down to money, money, money, and little else. “Money buying Russian oil is paying for the assault on democracy in Ukraine,” Pelosi said. She accused China of “buying” votes from smaller countries at the United Nations, and said the U.S. must join with the European Union “in using the leverage of this big market to have the playing field be more even.”

    Pelosi refused to say Trump’s name even once during her one-hour session, referring to the 45th president instead by “What’s his name” under her breath. Still, she condemned the extremism and anarchy that had overtaken American politics since Trump began his rise nearly eight years ago. Her husband, Paul Pelosi, who was struck in the head with a hammer by a home invader last fall, joined her on today’s trip to Texas, which was unusual, given that he’s still recovering from the attack. “I was the target,” she said. “He paid the price.”

    She spoke of the January 6 insurrection with sadness and disgust—anarchists “making poo-poo on the floor of the Capitol”—and acknowledged the rioters’ goal to put a bullet in her head that day. Her successor, Speaker Kevin McCarthy, recently gave a trove of January 6 material to Fox News in the name of governmental transparency. Fox’s biggest star, Tucker Carlson, downplayed the severity of the Capitol storming in a broadcast last week. “Something must be wrong with Tucker Carlson,” Pelosi said. “There’s money that runs a lot of it.”

    David From: No tears for Kevin McCarthy

    Taking a brief conciliatory note, she said she was hoping “for the best” for McCarthy as he continues his first year as House speaker. “We need to listen, and I hope that Kevin will listen to other than just the very radical, right-wing fringe of his party,” she said, apparently gesturing at Trump and other election deniers. When asked about the prospect of Trump again becoming the GOP nominee in 2024, she was ready with a canned line: “If he is, we impeached him twice, and he’s gonna lose twice.” (Left unsaid was that neither impeachment resulted in Trump’s removal from office.)

    As for President Joe Biden, Pelosi called him a “magnificent leader” and said that she “certainly hopes” he will run again. (She joked that he’s younger than she is.) Nevertheless, Pelosi seemed slightly agitated that Biden had yet to formally declare his candidacy, leaving other potential candidates in the Democratic party with few options. “I think it would be efficient for us to have a president seek reelection, and we should be moving on with it when we can. Whatever decision he makes, we’d like to know.”

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    John Hendrickson

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