Iowa U.S. Senator Chuck Grassley said Wednesday that the 14th Amendment may present President Obama with the ability of bypassing Congress in order to raise the nation’s debt ceiling before an August 2 deadline.
In a conference call with Iowa reporters, Mr. Grassley said the 14th Amendment guarantees that the debts of the federal government shall be paid.
“People are looking at the fact that maybe the debt ceiling bill that Congress presumably has to pass for the government to borrow more maybe is contrary to that constitutional provision,” Mr. Grassley said.
The amendment reads, in part, that “the validity of the public debt of the United States, authorized by law … shall not be questioned.” A number of legal analysts have offered their opinions, saying Mr. Obama may have the power to continue issuing debt on behalf of the United States even as Congress continues to negotiate the terms under which that debt is offered.
The Iowa Republican’s comment comes as President Obama is scheduled to meet with House Republicans in an effort to move forward talks aimed at raising the nation’s $14.3 trillion debt ceiling. Mr. Obama will meet with Congressional Democrats and Republicans Thursday at the White House, all the while continuing his push for compromise.
Speaking Wednesday, Mr. Obama reiterated his desire for raising additional revenue while reducing spending. Taking part in a Twitter town hall, Mr. Obama. pointed out that bringing tax rates for the top 2 percent of income earners in the U.S. back to where they were under President Bill Clinton would raise “hundreds of billions of dollars” and could solve the nation’s debt problems if combined with spending cuts.
“That’s what I’m going to keep on trying to bring the parties together to agree to,” Mr. Obama said.
Meanwhile, Virginia Rep. Eric Cantor said Republicans remain open to the possibility of closing loopholes for oil and gas companies, adding that Republicans would continue to oppose increasing taxes.
Mr. Grassley ended his interview, striking a tone of optimism, saying he expects Congress to reach a deal.
“I guess I have the feeling that government’s been in crisis in the past and that deadlines bring action, and there’s going to be action before Aug. 2,” the Iowa Republican said.
