Civic Register
| 9.22.21
Democrats Set Stage for Debt Limit Showdown With Republicans in the Senate
Should Democrats raise the debt limit via reconciliation if there's no Republican support?
What’s the story?
- House Democrats on Tuesday voted along party-lines to advance a stopgap funding bill that includes a suspension of the debt limit until mid-December 2022, setting up a Senate showdown with Republicans who have signaled for months that they oppose the debt limit hike and argue Democrats should raise it on their own through reconciliation.
- The standoff comes ahead of a September 30th deadline to fund the government and avoid a partial government shutdown, along with a likely deadline of mid-October to mid-November to raise the debt limit and prevent the federal government from defaulting on its obligations.
What’s happening with the debt limit?
- The debt limit was most recently increased by Congress in August 2019 with the enactment of the Bipartisan Budget Act, which suspended the debt limit through July 31, 2021. When that date arrived, the debt limit was reset to accommodate the debt accumulated during the suspension. In addition to the federal government’s budget deficit from its regular operations, that included several bipartisan pandemic relief measures, such as the $2.2 trillion CARES Act and the $900 billion December relief bill, along with Democrats’ $1.9 trillion spending package that was enacted through reconciliation in March 2021.
- In early August, the Treasury Dept. began taking its “extraordinary measures” to fund the government’s obligations on an interim basis until the debt limit is increased or those measures are exhausted. Recent projections have indicated that extraordinary measures can last until mid-October or as late as mid-November.
- Senate Republicans have indicated they would support a clean continuing resolution to fund the government along with targeted disaster relief and assistance for Afghan evacuees, but oppose Democrats’ inclusion of a debt limit increase. Only four GOP senators, far short of the 10 needed to meet the 60 vote threshold to overcome a filibuster, have said they would be willing to allow Democrats’ current debt limit solution to advance.
- GOP lawmakers have argued that Democrats should use the budget reconciliation process to raise the debt limit, which would allow them to do so without any Republican votes, given that they’re already using it to advance a partisan $3.5 trillion spending plan. Using reconciliation for the debt limit would require Democrats in the House and Senate to approve a revised budget resolution with reconciliation instructions that raise the debt limit, and then produce a reconciliation bill that raises the debt limit and passes both chambers.
- Democratic leaders intend to force a Senate vote on the House-passed bill early next week, and they are accusing the GOP of being reckless with the stability of the economy by risking a default. Thus far, they haven’t suggested that they’re preparing to use reconciliation as a fallback plan if Senate Republicans follow through with their opposition to the debt limit hike.
- Democrats would prefer to not use reconciliation because they would likely have to specify a dollar amount for the new debt limit (the national debt is currently about $28.7 trillion); whereas a suspension of the debt limit as proposed in the House Democrats’ bill would allow the federal government to rack up an indefinite amount of debt incurred through December 16, 2022.
- It also could prove to be a time-consuming process. The Senate would be required to hold an amendment “vote-a-rama” for both the revised budget resolution and the reconciliation bill, which would give GOP senators two opportunities to force votes on amendments and consume multiple days of floor time. However, it’s possible that GOP senators may not request as many amendment votes as in a typical vote-a-rama and that they could yield back debate time.
- The process of revising the budget resolution to unlock the use of reconciliation could be undertaken while Democrats advance their $3.5 trillion spending plan through reconciliation and wouldn’t necessarily interfere with the consideration of a bipartisan bill to fund the government prior to September 30th and provide funding for disaster relief and Afghan resettlement.
- Failure to raise the debt limit and subsequent default on the government’s obligations would have “catastrophic consequences” according to Treasury Secretary Janet Yellen. A default would likely cause interest rates to rise and thereby raise the cost of servicing the national debt, which cost $345 billion in FY2020 according to the Congressional Budget Office.
— Eric Revell
(Photo Credit: Schumer: Senate Democrats via Flickr / Creative Commons | McConnell: Gage Skidmore via Flickr / Creative Commons)
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Once again the Republicans who haven’t done anything in the last 15 years are added again and we’re going to run this country right down the toilet. 15 years of Republican miss handling of the economy has led to the disaster that were now living through. Top that off with their total in action over COVID Well it could’ve been temp down from the beginning has made this disaster even worse. Republicans are pathetic, the whole party stinks from the head down.
Using Resolution should be a last option. If it becomes the only possibility, we should remember that the Republicans forced us into it and McConnell forced them into it.
Debt limit has to be raised to pay the bills that have already been incurred. Raising taxes on Corporations and the wealthy is the only way to bring down the nation’s debt
The National Debt is only a “problem” when the Democrats are in power. The “problem” being the Socialist Republicans can’t give away more Middle Class tax dollars to Wealthy Corporations and Individuals. The Texas Three Stooges are notorious for this. Shameless.
Screw the Republicans they are the absolute do nothing party but suck up to a loser like trump who lost the house and the Senate and the presidency and still they suck up to the looser. People like Mitch McConnell Devon Nunez and Lindsay Gram should be thrown out of office and thrown into prison along with the idiot mark-0 robi0-polo. All of the scumbags that let Donald Trump and insult their families their fathers their wives it’s disgusting what cowards they are. Just look at Marco Rubio Donald Trump said his father help killed Kennedy as ludicrous as that is Marco Rubio let him get away with it and then bowed before the skim bag Trump. Then ted The looser Cruz let Trump call his wife “ugly “. That’s seemed to be fine with Ted he didn’t care If Donald Trump who his own wife poses nude for porno mags said anything. This all goes to show how absolutely ridiculous and sickened the republican party is today. A party of lies and liars. At this point if you support Donald Trump with everything that has been laid on the table from the bogus recount in Arizona to the absolute fact that Donald Trump help kill 500,000 Americans than you are as big of an idiot as Donald Trump is. You are being used to you being made a loser. That’s trumps gambit he knows he’s a loser he’s trying to drag everyone down with him that he can Well comes from psychologically who knows maybe Donald Trump’s mother never liked him maybe Donald Trump’s father never liked him but anyone in America smart will do the same and Not like him because he is the black plague of America. His whole game is to drag this country down to reflect his own miserable life.
All Politicians exaggerate and, on occasion, lie. (You know, "Two Chickens in Every Pot.") From Nixon on, Republicans raised lying to an art form and a science. White Racists were targeted and have been ever since. McConnell has convinced Republicans to place party above country. Trump made lying a way of life for Republicans Toomey, like most card-carrying Republicans, is a Trump acolyte. Like you & I many give him zero credibility. My question is how many Pennsylvanians are damn gullible? Does a majority of Pennsylvanians believe their economic situation is fantastic? Are they gaslit about personal finance? When we have the Great Facturing of America, Pennsylvania may not be accepted into the Northeast Coalition. I'll feel bad if Pennsylvania become part of some bizarro Upper Midwest Confederation of Nation States joining Ohio and West Virginia. 🥺 @Brian wrote: "I heard Senator Toomey on CNN today once again perpetuate the lie of the massive tax cut for the wealthy resulting in the "best economy of..." Read more here: https://www.causes.com/comments/1499612
Pass the bills. We voted to move forward. Get on board or get out of the way.
Raise it!
@Sandra, love your comment! In just a few words, you cut right to the heart of the matter. @Sandra wrote: "Never forget how the Republicans have not had the best interests of the American people at their core for decades now. ..." Read more here: https://www.causes.com/comments/1499327
What’s the point of bipartisanship then!?
I heard Senator Toomey on CNN today once again perpetuate the lie of the massive tax cut for the wealthy resulting in the "best economy of his lifetime", even though it HAS NEVER paid for itself and never will. We need to stop listening to these Republican lies. They don't pass responsible budgets, the Trump tax cut and massive spending blew a huge hole in the deficit that the Democrats are trying to fix, and Toomey is running away at the end of his turn without ever once paying for the mess he helped create. Democrats need to pass a budget that will pay for itself and raise the debt ceiling to pay for all the holes the Republicans created.
I am looking for a well done video presentation on the philosophies and views of government finance. Is there a good Ted Talk, YouTube Video, a Great Course lecture series, or some other platform I am unaware of, something with a minimum of misinformation and demagoguery. Thanks in advance!
@Dave I would venture to say you also know very little about conservatives as well. You’re supporting dictatorial behavior because you think your camp is morally superior. Hm. Superior? Wonder where that ideology which persecuted a whole group of people based on their category / beliefs / opinions / cultural identification has been used in the past? That which you’ve labeled Republicans is that which you’ve allowed the media to tell you is true. It’s called projection and propaganda. If there’s one thing I know, it’s that not one singular politician in power at this time (red or blue) has anything but their own special interests and power grabs in mind. The sooner you realize that the blue is just as bad as the red, the sooner we can stop attacking the straw men they’ve set up for all of us and focus on the real problems. Ignorance is bliss. And it’s certainly not an excuse to abuse power, regardless of which side you support. All these “inclusive” and “progressive” liberals are literally the most intolerant and hate filled humans I’ve ever interacted with. These ways of thinking are going to cause all of us to suffer really badly. I hope that those of you supporting these people are at least prepared for the economic fallout that’s going to come after the 1st week of December. It’s already started.. but after those mandates go into affect.. whoooo.. look out. Better have food and water stored somewhere safe. It’s going to get tough. Sad thing is.. you’ll all be looking at the conservatives for help because you have no idea how to function without big brother. 🙄 You’re not morally superior. And it’s the epitome of intolerance and ignorance to label an entire group of people based on the hatred you’ve got within your heart. Stop listening to propaganda and start thinking for yourselves. Or we are all boned.
What’s the purpose of a debt limit, if every time you approach it, you increase the limit? Cut government employees, and stop funding border walls while our own borders are not secure.
Gop blocks biden nominees Gop blocks debt limit Gop blocks immigration reform Gop blocks supreme court nominees Gop blocks infrastructure bill Gop blocks mask mandates Gop blocks vaccine mandates Gop blocks abortion bills Gop blocks voting rights bill Gop blocks election certification The list goes on What does Gop stand for? What alternatives has Gop tabled? In plain language … Gop are blockheads? Can America progress?
Donald Trump came to Georgia yesterday and made one of his outlandishly laughable ridiculous lie filled speeches. But, now I totally get it – I hadn’t been thinking like an adolescent – I totally get what Trump is doing he is trying to destroy the republican party for revenge for the lack of support he felt he got when he tried to overthrow the democratic process and Install himself as king of America. I totally get it now – he is absolutely insane…… He is truly an adolescent little brat boy and a grown man’s body.
This one of those times when the GOP need to stop being hypocrites and vote to raise instead of playing politics with federal workers lives! We raised it how many under the tRump administration!?
SINCE THE GOP IS PLAYING GAMES WHILE THE COUNTRY SUFFERS .....A DEFINATE YES!!! THE GOP CAN GO TO HELL!!!! I FOR ONE AM SICK AND TIRED OF THIER CRAP!!!! GROW UP GOP YOUR DAYS ARE NUMBERED ANYONE WHO PLAYS WITH TRUMP IS JUST AS CORRUPT AS TRUMP!!!
The debt limit is a bogus tripwire in our politics. Time to say goodbye.
This is money already spent. Most of this by the past administration. McConnell voted yea to most of it. Now he’s willing to crash our economy (that’s already struggling) & shut our government down, just to make Biden/Democrats look bad. Pathetic.