In Hiroshima, Jean-Pierre Says the Debt Limit Is 'Not Negotiable'; a Week Later Biden Made a Deal (May 20, 2023)

In Hiroshima for the G7 summit, a reporter asked the White House whether talking with House Republicans about the debt limit was a bad precedent. “Doesn’t White House participation in negotiations, though, set a dangerous precedent that if Republicans hold out on raising the debt limit, they can bring the White House to the table and possibly bring concessions on spending?” [1]

“Say that last part again?” press secretary Karine Jean-Pierre asked. The reporter repeated it [1].

“So, look, here’s the thing: They cannot be holding the American economy hostage. They can’t,” Jean-Pierre said. “And so it cannot be held hostage by Republicans — we have been very clear — by these MAGA Republicans, by the Speaker.” [1]

The video above shows the exchange at the May 20, 2023, briefing in Hiroshima, Japan. Quotes are from the official transcripts published by the American Presidency Project [1][2].

”It Is Not Negotiable”

Jean-Pierre drew the line. “So, look, the President has held the line on this. It is not negotiable. We should not be negotiating on the debt. This should be done without conditions,” she said [1].

A reporter tried to pin down how that would work. “But what’s going to happen when the legislation hits Congress and in it is to raise the debt ceiling but it comes with fiscal spending cuts?” [1]

“Well, we’re not even there yet,” Jean-Pierre said. “These are two track — two separate conversations that are happening,” she said, adding that “default is not negotiable” [1].

”We Are Not a Deadbeat Country”

Another reporter pushed back on the White House’s framing. “I understand you’re saying that should not be the case, but we’re talking about what is happening right now, which seems very clear to be an ongoing set of negotiations over a potential economic catastrophe for not only the U.S. but the rest of the world,” the reporter said, asking what the White House was telling allies [1]. “Look, this is a country that does not — does not — does not pay their debt — we pay our debt. We are not a deadbeat country,” Jean-Pierre said [1].

“The President has been very clear. And the President is optimistic that we can get this done,” she said [1].

The briefing began on a light note. “This podium is very high,” Jean-Pierre said, to laughter [1].

”Instead of Australia”

The standoff had already changed Biden’s trip. A reporter asked about “the difficulties of the President choosing which part of the trip to cancel,” weighing “the other terrible situation of saying to the world, ‘Sorry, I can’t come and talk to you because I’m dealing with something at home’” [1].

Jean-Pierre said the Quad leaders would meet in Japan instead: “So, that — so that conversation is going to continue, but here instead of — clearly, instead of Australia.” [1]

Asked whether Biden would call Speaker Kevin McCarthy after “the sort of hiccup that happened in the talks last night,” she said Biden “was — was updated by his team last night” and was “being kept up to date daily” [1].

In her opening, Jean-Pierre had warned: “A default would plunge our economy into recession.” She added: “And we hope that Speaker McCarthy’s team will negotiate in good faith as well.” [1]

“Including F-16s”

The same briefing brought news on Ukraine. “Just yesterday, as you all know, President Biden informed his G7 counterparts that the United States will support a joint effort to train Ukrainian pilots on fourth-generation fighter aircraft, including F-16s,” National Security Advisor Jake Sullivan said [1].

A reporter noted that in February, Biden had told ABC News, “There’s no basis upon which there is the rationale, according to our military, now to provide F-16s.” “What’s changed in any way?” the reporter asked [1].

”What Was He Doing for the Last Several Hours?”

A reporter Jean-Pierre called Peter asked why Vice President Kamala Harris was not running the talks. “The last time that we got this close to a debt ceiling default, President Obama deputized his Vice President to lead the negotiations. Why doesn’t President Biden trust Vice President Harris to lead these negotiations —” “She’s in Los Angeles,” the reporter added. “She could be at the Capitol. Why isn’t she?” [1]

Then he asked about Biden. “And you just said that you’re assuming the President will be updated momentarily by the team. What was he doing for the last several hours while they were in these meetings?” [1]

“Well, the — they were having conversations. Right? They were on the Hill, the negotiators,” Jean-Pierre said. “And it’s the middle of the night here. I’m just curious what he did —” the reporter said. “Yeah, but how would he be updated if they’re still having conversations on the Hill? It just ended moments ago,” she answered [1].

“Couldn’t he call in?” the reporter asked. “Look, Peter, we’re going to give the the space to these negotiators — the time and the space — to have these conversations,” Jean-Pierre said [1].

By the Numbers

7 days: from “not negotiable” to Biden’s deal with McCarthy [1][2].
June 3, 2023: the day the deal became law [3].
Jan. 1, 2025: the end of the debt-limit suspension in that law [3].
$30 billion: unspent COVID-19 money the deal clawed back, per Fox News [4].

What Happened Next

Biden made a deal. One week later, on May 27, 2023, Biden announced: “Earlier this evening Speaker McCarthy and I reached a budget agreement in principle.” He said: “The agreement represents a compromise, which means not everyone gets what they want.” [2]

Republicans won cuts. The deal would “expand some work requirements for the Supplemental Nutrition Assistance Program, or SNAP” and “rescind about $30 billion in unspent coronavirus relief money,” Fox News reported [4].

It became law. Public Law 118-5, the “Fiscal Responsibility Act of 2023,” was “Approved June 3, 2023.” It said the debt limit “shall not apply for the period beginning on the date of the enactment of this Act and ending on January 1, 2025” [3].

For the White House’s line two months earlier, see HYGO News’ page on the March 30, 2023, briefing, and for how the White House defended the final deal, the page on the May 30, 2023, briefing.