SENATE OKS PATH TO RAISE DEBT LIMIT
Measure tweaks rules to allow Dems to increase ceiling
The Senate on Thursday advanced a bipartisan deal that paves the way for lawmakers to raise the debt ceiling, a move that positions Congress to stave off a catastrophic default ahead of a fast-approaching fiscal deadline.
Fourteen Republicans joined Democrats in overcoming a key procedural hurdle and setting up a final vote on the unusual arrangement, which does not actually lift the cap — but rather tweaks Senate rules on a one-time basis so lawmakers can tackle the matter more swiftly.
The House adopted the measure on Tuesday. The Senate is expected to hold a final vote to approve it before the end of the week, allowing President Joe Biden to sign a bill that also prevents a series of automatic cuts to Medicare. That could tee up Congress next week to raise the debt ceiling by trillions of dollars, covering federal spending obligations beyond the 2022 midterm elections — and defusing another potential last-minute conflict until after the political fate of the Capitol is decided.
Republicans including Sens. Mitt Romney of Utah, Joni Ernst of Iowa, Rob Portman of Ohio and Lisa Murkowski of Alaska backed the compromise, which had been brokered by Senate Majority Leader Chuck Schumer, D-N.Y., and Senate Minority Leader
Mitch McConnell, R-Ky.
“The nation’s debt has been incurred on a bipartisan basis, so I’m pleased that this responsible action will be taken today to facilitate a process that avoids a default,” Schumer said in a speech that praised McConnell before the vote. “This is the responsible path forward: no brinkmanship, no default on the debt, no risk of another recession.”
A few Republicans were swayed by the decision to package the debt limit process
with the postponement of mandatory cuts to a range of federal spending programs, including community block grants, farm aid and a 4 percent reduction in Medicare payments to doctors and hospitals. The legislation would also extend a temporary pay increase in Medicare implemented earlier in the pandemic, allowing doctors and hospitals to keep their current pay rates until April, when the cut begins to phase out.
But some Republicans
still expressed unease with the idea ahead of its passage, arguing they should not have provided any help to Democrats on the matter. “They have been spending money on a partisan basis without input from Republicans,” Sen. Mike Rounds, RS.D., told reporters before opposing the bill.
The sharpest criticism came from former President Donald Trump, who attacked McConnell earlier this week for negotiating with his political foes — even
though Trump himself had to rely on Democratic votes to raise the debt ceiling during his administration.
“The Dems would have folded completely if Mitch properly played his hand,” Trump said.
The bitterly divided Senate reached the compromise earlier this week, resolving a monthslong battle between Democrats and Republicans that carried immense financial stakes — threatening, in the case of inaction, to plunge the economy into a recession.
McConnell initially had refused to supply GOP votes for a direct increase in the debt ceiling, which allows the United States to borrow money to pay its bills, as part of the party’s opposition to Biden’s broader spending agenda. Instead, he called on Democrats to address the measure on their own using the same legislative maneuver they intend to invoke to pass a $2 trillion initiative that aims to overhaul federal health care, education, climate and tax laws.
But Schumer refused to take that route, arguing it was too politically risky so close to a deadline.
The political stalemate nearly pushed the country to the fiscal brink in October, raising the potential for a global economic disruption, until McConnell relented and Republicans supplied the necessary handful of votes to adopt a short-term increase. That bought the U.S. government until Dec. 15, at which point Treasury Secretary Janet Yellen has predicted the country may not have enough money to cover its financial obligations.
Both sides consequently embraced the new arrangement as a political victory. Republicans won’t have to vote again on an actual, numerical increase to the debt ceiling, and Democrats can say they did so after some measure of bipartisanship and without risk of GOP obstruction. The fast-track procedure guarantees a vote on the increase set at a simple majority, with no opportunity for a filibuster.