McCarthy says House will take up bill to raise debt ceiling with spending cuts

House Speaker Kevin McCarthy pledged on Monday to pass legislation to raise the nation's debt ceiling — but on condition of capping future federal spending at 1% — as he lashed out at President Biden for refusing to engage in budget-cutting negotiations to prevent a debt crisis.

In a high-profile speech at the New York Stock Exchange, McCarthy, the Republican leader who is marking his 100th day as speaker, said the nation's debt load is a "ticking time bomb" and Mr. Biden is "missing in action" as the deadline nears to raise the debt limit.

"Make no mistake: the longer President Biden waits to be sensible, to find an agreement, the more likely it becomes that this administration will bumble into the first default in our nation's history," he said. "Let me be clear: defaulting on our debt is not an option. But neither is a future of higher taxes, higher interest rates, more dependency on China and an economy that doesn't work for working Americans."