How Is the 14th Amendment Connected to the Debt Ceiling?

Treasury Secretary Janet Yellen responded to calls for President Joe Biden to invoke the 14th Amendment to raise the debt ceiling as the federal government faces a looming deadline to avoid a default on its financial obligations.

The Treasury Department has warned that lawmakers have until June 1 to reach an agreement that would raise the federal government's $31.4 trillion debt ceiling to avoid a default, which financial experts say could have devastating effects on the U.S. economy. However, negotiations are stalling.

Republicans, who control the House, say they will not agree to raise the debt ceiling without spending cuts, but an agreement has not been reached between them and Biden, a Democrat who has accused House Republicans of holding debt negotiations "hostage" with their "draconian" demands. A GOP-backed bill to raise the ceiling also faces difficult odds in the Democratic-led Senate.

As congressional negotiations continue, some legal experts are suggesting the Biden administration could turn to a separate legal mechanism to unilaterally increase the debt ceiling without support from Republicans.

Calls for Biden to invoke the 14th Amendment to avoid default if an agreement is not reached by the end of the month have grown, but White House officials have thus far said Congress striking a deal would be the stronger option.

Newsweek reached out to the White House and legal experts for comment via email.

What Does the 14th Amendment Say About Debt Limit?

The 14th Amendment was ratified on July 9, 1868, after the American Civil War to abolish slavery and ensure civil rights for Black Americans. It has since become a powerful amendment that has played a role in crucial legal cases and Supreme Court decisions.

Some legal experts say the 14th Amendment could provide the president a legal mechanism to raise the debt ceiling, specifically pointing to Section Four of the amendment.

"The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned," the amendment reads.

Alison LaCroix, a University of Chicago law professor, told Newsweek that the legal theory behind advocates for invoking the 14th Amendment is based around the idea that Congress, by imposing a debt limit, is in violation of this clause and that Biden can argue he is constitutionally bound to continue paying the government's debt.

"The most aggressive reading, I think would be, that when Congress set the debt ceiling or the debt limit, that in itself was an infringement of the 14th Amendment because it called into question the validity of the public debt," LaCroix said.

Should Biden invoke the 14th Amendment, he could face a lawsuit, but that would likely have to come from a member of Congress who is able to prove he or she was harmed by the action, said LaCroix. Courts, however, could determine this is a political dispute that should be decided between Executive and Legislative branches.

Where the Biden Administration Stands on 14th Amendment

Yellen warned during an appearance on ABC News' This Week that Biden invoking the 14th Amendment, which could be largely uncharted legal territory, would create a "constitutional crisis," urging lawmakers to reach a deal.

"Our priority is to make sure that congress does its job. There is no way to protect our financial system in our economy other than congress doing its job and raising the debt ceiling and enabling us to pay our bills. And we should not get to the point where we need to consider whether the president can go on issuing debt. This would be a constitutional crisis," she said.

When reached by Newsweek, a Treasury Department spokesperson referred to Yellen's remarks on This Week.

Meanwhile, Biden said he has "not gotten there yet" when asked if he supports invoking the amendment during an MSNBC interview last Friday—but he has not publicly ruled out turning to this as a last resort should Congress fail to reach a deal.

Update 05/09/2023 5:55 p.m. ET: This story was updated with comment from Alison LaCroix.