House Republican leader: Congress should raise debt ceiling before August recess

House Republican leader: Congress should raise debt ceiling before August recess
© Aaron Schwartz

House Minority Leader Kevin McCarthyKevin Owen McCarthySupreme Court rulings reignite Trump oversight wars in Congress The Hill's Campaign Report: Florida's coronavirus surge raises questions about GOP convention McCarthy calls NY requests for Trump tax returns political MORE (R-Calif.) said Tuesday that Congress should increase the debt limit before lawmakers leave town for the August recess.

“There is a real concern, and I don't think this is a question on any side of the aisle, that when the debt ceiling can hit, that it could hit early September or maybe sooner," he told reporters at a news conference on Capitol Hill. "We should not leave for August without dealing with that.”

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McCarthy said he believes progress has been made in recent days with negotiations between congressional Democrats, Republicans and the White House.

“I do think that we can get this done. And I would say to the Speaker, if we are as close as I believe we are, and we need a day or two longer, we should stay there and make sure we get it done,” he added.

Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money: Supreme Court upholds NY prosecutors' access to Trump's tax returns, rebuffs Congress | Trump complains of 'political prosecution' | Biden rebukes Trump, rolls out jobs plan Mnuchin: Next stimulus bill must cap jobless benefits at 100 percent of previous income Why Trump can't make up his mind on China MORE — who has also expressed optimism about the chances of striking a bipartisan deal — warned the government could run out of money in early September in a letter sent to congressional leadership on Friday.

Speaker Nancy PelosiNancy PelosiSupreme Court rulings reignite Trump oversight wars in Congress Pelosi on Baltimore's Columbus statue: 'If the community doesn't want the statue, the statue shouldn't be there' Pelosi says House won't cave to Senate on worker COVID-19 protections MORE (D-Calif.) and Mnuchin have been holding talks to discuss raising statutory budget caps alongside an increase in the nation's borrowing limit to avoid a default.

Top Democrats are looking to link the debt ceiling with a budget agreement in hopes it will provide them with more leverage during spending negotiations.

Many Republican lawmakers have said they want to avoid a stand-alone vote on raising the debt ceiling.

Failure to increase the debt limit could roil global markets and threaten recent economic gains.