Office of Management and Budget director Jacob Lew refused to entertain the possiblity that the debt ceiling might not be hiked by August 2.
“I’m confident that the responsible leaders of Congress know that is not an option,” he told CNN’s Candy Crowley on State of the Union.
Lew admitted that a “fringe” thought that “playing with Armaggedon” was a good idea, but said the White House had “no plan other than meeting our obligations.”
He said the White House had made no decisions on what to prioritize spending on if the debt ceiling was not raised, saying it was “unacceptable” for the United States to be unable to meet all its spending obligations.
He also rejected the idea that the Balanced Budget amendment should be passed, calling it “quite draconian” and arguing that it would force severe Social Security and Medicare cuts.
Sen. Lindsey Graham (R., S.C.), also appearing on SOTU, said he was confident the House would pass “Cut, Cap, and Balance” legislation. He stressed the need for the Balanced Budget Amendment, saying that he couldn’t see either party reining in the spending without a structural change.
Graham also said he would be open to closing some “loopholes,” such as ethanol subsidies, if some of the revenue raised was set aside for paying down the debt.