The White House says US President Joe Biden has postponed his planned trip to Australia because of stalled domestic debt ceiling negotiations.
Mr Biden will leave the US tomorrow to travel to Japan for a meeting of the G7, which Australian Prime Minister Anthony Albanese is also attending.
The US president was planning to travel to Papua New Guinea and Australia afterwards, including visits to Sydney and Canberra for the Quad Leaders' Summit and an address to Australia's parliament.
However, Mr Biden will now fly home directly from Japan after the G7 to negotiate with Republican politicians over the debt ceiling, according to a White House statement.
Negotiations over the debt ceiling have reached a critical point, with Republicans asking for spending cuts in exchange for raising the limit, and the US Treasury set to run out of cash as soon as June 1.
"Revitalising and reinvigorating our alliances and advancing partnerships like the Quad remains a key priority for the president," the statement read.
"We look forward to finding other ways to engage with Australia, the Quad, Papua New Guinea and the leaders of the Pacific Islands Forum in the coming year."
Speaking later to reporters, Mr Biden was blunt in his explanation of why the visit had been postponed.
"Defaulting on the debt is simply not an option," he said.
The prime minister told ABC Radio Sydney that Mr Biden had contacted him on Wednesday morning to inform him of the postponement.
"We had a very good discussion this morning … and [he] confirmed he would be postponing his visit," Mr Albanese said.
"He confirmed my invitation to the United States, a state visit later this year, and he is looking forward to getting down to Australia as soon as possible.
"He's very disappointed at some of the actions [of] some members of Congress and the US Senate. We long ago passed the time where opposition parties tried to hold up supply in Australia … but that effectively is what you have got in the US at the moment."
White House national security spokesperson John Kirby earlier said Mr Biden's trip had been "re-evaluated" in light of the ongoing negotiations, and invoked other world leaders as he called on Congressional Republicans to raise the debt limit.
"These leaders … understand how important American credibility and leadership is," he said. "And that's why they understand how important it is that the president stay on top of this issue.
"We wouldn't even be having this discussion about the effect of the debt ceiling debate on the trip if Congress would do its job and raise the debt ceiling the way they've always done."
Mr Biden's visit was to be the first visit by a US president in almost a decade, and would have marked the fifth time an American leader addressed MPs and senators.
Quad leaders' travel being discussed
The prime minister was planning to host Mr Biden, as well as Japanese Prime Minister Kishida Fumio and Indian Prime Minister Narendra Modi, for the Quad Leaders' Summit next week.
However, Mr Albanese said in a statement that the government was now in discussion with "our friends in both Tokyo and Delhi" over Mr Kishida and Mr Modi's travel arrangements.
"Once those discussions are concluded, we will make a further announcement on their travel," he said.
Mr Albanese told ABC Radio Sydney that Mr Biden would "try to convene a [Quad] meeting given all four leaders are in Japan" for the G7, but the Quad dialogue in Sydney could still take place with a senior US representative attending in Mr Biden's place.
On Tuesday, Mr Albanese said the summit would be the most significant gathering in Australia since the G20 more than a decade ago.
He said the bilateral relationship with India would deliver economic benefits for Australian trade, investment and business. He said no partner in the Indo-Pacific was closer than Japan.
"Our partnership is underpinned by our shared values, including a commitment to democracy, human rights, free trade and a rules-based order," Mr Albanese said.
The Quad leaders' meeting is scheduled to be held at Sydney's Opera House on May 24.
Postponement a blow for PNG
Mr Biden's decision will be a particular blow for Papua New Guinea, one analyst says.
The president was due to have witnessed the signing of a new strategic agreement with Micronesia and meet with 18 Pacific island leaders in the capital, Port Moresby.
The visit would have made Mr Biden the first sitting US president to visit the country.
Mr Biden's team spoke with leaders in PNG to inform them of the decision, the White House said.
Gregory Poling — an Asia expert at Washington think tank the Center for Strategic and International Studies — said Mr Biden's decision would be a setback for PNG, as well as the president's efforts to woo Pacific Island countries in the face of increasing competition from China.
"I'm sure the White House will find ways to make this up to partners in the short term. But it adds to the evidence that US domestic dysfunction weakens us abroad," Mr Poling said.
Fresh appeal for Assange release
The father of Julian Assange earlier renewed his campaign to have the prime minister bring up his son's legal woes and have the US president drop charges against the WikiLeaks founder.
John Shipton said he was preparing to send a letter requesting a meeting with the president ahead of his planned arrival, and protests would continue if the president came to Australia.
"My job is to solely focus on bringing Julian home and speaking to the supporters wherever I can," he told ABC's 7:30 program on Tuesday.
"It's a good time, of course, to remind the president that it is a concern of the Australian people."
Mr Albanese is also due to hold bilateral meetings with the leaders in Australia.
The leaders will discuss climate change and accelerating the clean energy transition as well as Indo-Pacific security.
The Quad is not a military alliance, but was set up to counter Chinese influence in the region.
ABC/Wires
