The White House dismisses minting a $1 trillion platinum coin to raise the debt ceiling, saying it's not a 'viable' option

• White House Press Secretary Jen Psaki ruled out minting a coin to raise the debt limit.
• Democrats are struggling to find a way to raise the limit without GOP support.
• A growing number of advocates say minting a $1 trillion platinum coin would avoid partisan showdowns.

Republicans have blocked every attempt by Democrats to raise the debt limit before the government defaults on its debt, and White House Press Secretary Jen Psaki just ruled out minting a $1 trillion platinum coin as a potential solution.

"We obviously look at a range of options and none of those options were viable, either because they wouldn't be accepted by the Federal Reserve, by the guidance of our Treasury Secretary or just by legal restrictions," Psaki said during a Monday press briefing, referring to minting a coin to raise the debt limit. Psaki did not disclose what legal restrictions she was referring to.

"It requires Congress acting," she added. "That is the one path forward."

The idea of minting a coin is gaining momentum inside and outside of Congress.

It refers to statutory language about which types of coins can legally be minted in the US, and it says the Treasury Department can mint a $1 trillion platinum coin, deposit it at the Federal Reserve, and then continue paying its bills as normal. It would allow Congress to sidestep the "debt ceiling," which Rep. Bill Foster of Illinois told Insider is a "silly rule that we make up for ourselves." The rule requires Congress to vote on raising the debt ceiling every time the US reaches its borrowing limit.

Democrats such as Michigan Rep. Rashida Tlaib and New York Rep. Jerry Nadler support minting the coin because it would avoid partisan fights that put the US at risk of a default that could have catastrophic consequences on the economy. Nobel prize-winning economist Paul Krugman just endorsed it in his New York Times column.

But with Psaki ruling out the possibility of minting a coin anytime soon, Democrats will likely have to scramble to come up with another way to raise the debt limit on a short timeline.

Treasury Secretary Janet Yellen told Congress last month they have until October 18 before the US goes into default on its debt, and Democrats are struggling to find a solution to prevent a default on their own.

Senate Minority Leader Mitch McConnell blocked the bill that House Democrats passed last month that would have averted both a debt default and a government shutdown, and Democrats are planning to vote on another bill on Monday that would suspend the debt ceiling - something the GOP will likely strike down, as well.

McConnell wrote in a letter to President Joe Biden on Monday that Democrats are "sleepwalking" toward a debt default, and he remained adamant that raising the limit in something Democrats must do on their own through budget reconciliation.

"Bipartisanship is not a light switch that Speaker Pelosi and Leader Schumer may flip on to borrow money and flip off to spend it," McConnell wrote. "Republicans' position is simple. We have no list of demands. For two and a half months, we have simply warned that since your party wishes to govern alone, it must handle the debt limit alone as well."

But Biden said in Monday remarks that using reconciliation - a tactic that allows Democrats to pass legislation without Republican support - would be "an incredibly complicated and cumbersome process."

"Not only are Republicans refusing to do their job, but they're threatening to use their power to prevent us from doing our job - saving the economy from a catastrophic event," Biden said. "I think quite frankly it's hypocritical, dangerous and disgraceful."

Biden still won't mint the coin in response, though.