Democrats insist they won’t back down on debt ceiling
Senate Democrats insisted on Tuesday they would not back down to the Senate Minority Leader Mitch mcconnellAddison (Mitch) Mitchell McConnell On The Money – Presented By NRHC – Biden Plays Hard With The Debt Limit With McConnell Schumer Organizing Wednesday’s Vote To Suspend The Manchin Debt Ceiling Open To A Debt Increase By The reconciliation, excludes systematic obstruction PLUS (R-Ky.) In a high-stakes standoff over federal debt limit.
Just days away from a possible default, believed to be the first in U.S. history, Democrats walked out of a strategic luncheon saying they would have no way of using the long process of budget reconciliation to raise the debt ceiling.
Strong opposition has come from lawmakers like Sen. Tim kaineTimothy (Tim) Michael Kaine FDA clears new rapid COVID-19 test, says capacity to double Senate Democrats reduce tension Manchin Congress set to avoid shutdown, but debt scuffle looms MORE (D-Va.) Who have made it clear that Democrats, with their control of the White House and Congress, cannot let the debt deadline expire.
“We’re not doing it on reconciliation… it’s too complicated,” Kaine said.
Other Democrats have said there is simply not enough time to embark on the path of budget reconciliation.
“It’s impossible to do that now,” Sen said. Sherrod BrownSherrod Campbell BrownSenate Confirms Chopra Will Head Consumer Financial Protection Bureau (D-Ohio), Chairman of the Senate Banking Committee. “There are too many pitfalls, it takes too long.”
Senator Elizabeth warrenElizabeth WarrenFed’s internal watchdog to review transactions by senior officials Christie: 2020 Joe Biden “is now officially dead and buried”, Senate Democrats reduce tension Manchin MORE (D-Mass.) Said Democrats were prepared to use “every tool they can,” but there was not enough time to raise the debt ceiling through reconciliation.
“There isn’t enough time. It won’t work without the cooperation of the Republicans, and they are not giving us any cooperation,” she said.
McConnell said for weeks that Republicans would not participate in raising or suspending the debt ceiling and that Democrats must use the budget reconciliation process to create a special legislative vehicle that would raise the debt ceiling with only Democratic votes.
But the majority leader in the Senate Charles SchumerChuck SchumerSchumer: Congress must raise debt ceiling by end of week Battle for Biden’s agenda: The story of two Democratic parties Arizona Democrats’ frustration with Sinema reaches its climax MORE (DN.Y.) says it could take two weeks – maybe even longer since a single senator could drag out the process – and would require two long votes-a-ramas, when senators can propose a unlimited number of amendments that require voice speaking.
“Reconciliation is a long, convoluted and risky process,” Schumer said Tuesday.
Entrenchment on both sides makes some in every caucus nervous as Treasury secretary Janet YellenJanet Louise Yellen On The Money – Presented By NRHC – Biden Plays Hard With The Debt Limit With McConnell Manchin Open To Increased Debt Through Reconciliation, Rules America’s Default Obstruction Won’t Trigger The market chaos – and that’s the problem MORE is stepping up calls to Congress to raise or suspend the debt limit by Oct. 18 to avert a financial catastrophe that could cripple the U.S. economy.
Some Democratic senators are discussing the possibility of creating a special filibuster exception that would allow the debt ceiling to be suspended with just 50 votes. That would require toppling the Senate parliamentarian and setting a new precedent – a controversial tactic known as the nuclear option.
President BidenJoe BidenUS & Israeli Security Officials Talk Iran & Palestinians In Washington Over Money – Presented By NRHC – Biden Plays Hard With Debt Limit With The Long, Winding Road Of Bill McConnell Highway MORE, asked if Democrats were considering a debt ceiling waiver, told reporters at the White House on Tuesday that it was a “real possibility.”
But the centrist Sens. Joe manchinJoe ManchinSchumer Hosts Vote Wednesday To Suspend Debt Ceiling Overnight Energy & Environment – California Lawmakers Clash Over Oil Spill Attacks On Sinema Get More Personal MORE (DW.Va.) and Kyrsten SinemaKyrsten Sinema Attacks on Sinema become increasingly personal Biden to hit the road on economic agenda pushes California Democrats to blow up offshore drilling in oil spill MORE (D-Arizona) have made it clear this year that they do not support ousting the Senate obstruction rule, which requires 60 votes for most laws.
McConnell argued on Tuesday that Democrats had known for months that Republicans would give them no help in expanding the country’s borrowing power, which officially expired in late July.
“I said in July, I said in August, I said in September, there is a clear path to reach the debt ceiling, which has to happen – America must never default – and do it with Democrats only, ”he said.
McConnell helped negotiate a deal with then-Vice President Biden and other Democratic leaders in 2011 to raise the debt limit during a similar stalemate, but says the current situation is different as Democrats control the White House and both Houses of Congress.
He told reporters on Tuesday that he had not spoken directly to Biden about the matter.
Republicans say they don’t want to make it easier for Democrats to raise the debt ceiling when they know the next major spending bill will be a $ 1.5 trillion to $ 3 social spending program. $ 500 billion they plan to spend without any GOP Votes.
“Reconciliation is the hard way and it should be done the hard way. We’re talking about the biggest government expansion, the biggest tax hike in American history. It should be difficult, not easy, ”said Senate Minority Whip. John ThuneJohn Randolph Thune Debt fight reignites Democrats’ obstruction against Congress on the verge of avoiding shutdown, but debt scuffle looms over Schumer’s debt showdown on Monday’s government funding bill over the debt ceiling PLUS (RS.D.).
Schumer has scheduled a vote on Wednesday that will need the support of 10 Senate Republicans to advance legislation to suspend the debt ceiling until December 2022.
He says if GOP senators vote to end the filibuster and allow the bill to pass a final ascending or descending vote, Democrats can pass the debt ceiling suspension themselves. He argues that a potential crisis can be avoided if McConnell simply allows 10 members of his caucus to vote with Democrats to overcome the procedural hurdle of 60 votes.
“Tomorrow’s vote is a chance for some Republican senators to show some independence from hardline members of their conference running for president,” Schumer told reporters after meeting with his caucus.
“All we need is 10 Republicans to vote with us, and then none of them have to vote to raise the debt ceiling,” he said, warning that one Potential credit degradation “hovers above us”.
“It’s not too late, but he’s getting dangerously close. There is still time – still time for Republicans to step aside and allow this bill to pass by a simple majority vote, ”he added.
He accused “extreme right-wing extremists” of wanting the nation to default in order to harm Biden.
Republicans say there won’t be 10 votes on their side to dispense with a filibuster on Wednesday, meaning the standoff will likely head into the weekend and possibly next week.
Schumer has indicated that he is ready to cancel the October recess, scheduled for October 11-15, to gain more time on the debt ceiling debate.
“We’re going to stay here until we’re done,” he announced after meeting with his caucus for lunch.
The lack of time has led many Democrats to warn that immediate action is needed.
Senator Mark WarnerMark Robert Warner Hillicon Valley – Brought to you by American Edge Project – Facebook experiences widespread outage Senators warn of Chinese tech threats ahead of international meeting Senators table bill giving organizations 24 hours to report payments for attacks ransomware PLUS (D-Va.), A member of the Senate Budget Committee, said resorting to reconciliation would put the government at risk of defaulting on its debt as there are less than two weeks left before the deadline.
“I don’t think it’s possible within a time frame that would not jeopardize the full confidence and credit of the United States.… We are currently in the danger zone,” he said.
Fitch reviews said friday that a default would likely cost the United States its AAA credit rating and raise serious questions about the country’s ability to anchor the global financial system.
If the Treasury Department is forced to prioritize debt payments with its remaining cash, this “would lead to non-payment or delayed payment of other obligations, which would likely undermine the” AAA “status of the United States. “the rating agency wrote.
Moody’s expressed greater confidence that the United States would avoid a default in a Tuesday research note, but rested that assumption on Democrats using budget reconciliation as a last resort. While Moody’s expected a potential default to be resolved quickly, it warned that the United States would no longer deserve an AAA rating if the Treasury were to prioritize payments.
Even so, financial markets have largely kept their cool amid escalating tensions on Capitol Hill, reflecting confidence on Wall Street that a crisis will be averted. As the stock market has been volatile throughout September after months of solid gains and bond yields have risen, financial experts say these slowdowns were largely due to concerns about the economic recovery from the pandemic. and inflation.
The Dow Jones Industrial Average, the Nasdaq composite and the S&P 500 all finished Tuesday with gains in almost every sector of the economy after steep losses on Monday.