Mnuchin: Link aid, debt limit boost
Democrats are cool to treasury secretary’s approach to Harvey relief
WASHINGTON - Treasury Secretary Steven Mnuchin on Sunday called on Congress to combine a $7.9 billion disaster relief package for Harvey with an increase in the nation’s borrowing limit, saying it was time to “put politics aside” so storm victims in Texas can get the help they need.
“The president and I believe that it should be tied to the Harvey funding. Our first priority is to make sure that the state gets money,” he said. “It is critical, and to do that, we need to make sure we raise the debt limit.”
President Donald Trump visited storm-ravaged areas in Texas on Saturday, expressing hope for speedy congressional action on relief aid. But some House conservatives have said directly pairing it with an increase in the debt limit would be a “terrible idea” that sends the wrong message on overall government spending.
Trump plans to meet with congressional leaders from both parties this week as lawmakers return to Washington after their summer recess.
The government’s cash reserves are running low because the debt limit has actually already been reached, and the Treasury Department is using various accounting measures to cover expenses. Mnuchin originally had said Congress would need to raise the $19.9 trillion borrowing limit by Sept. 29 to avoid a catastrophic default on the debt, allowing the government to continue borrowing money to pay bills like Social Security and interest. But on Sunday, he said that deadline had moved up because of unexpected new spending on Harvey.
“Without raising the debt limit, I’m not comfortable that we would get the money that we need this month to Texas to rebuild,” Mnuchin said.
Asked about Trump’s past threats to force a government shutdown if Congress does not also include his $1.6 billion request for a wall on the U.S.-Mexico border, Mnuchin said Harvey aid was Trump’s “first objective right now.”
The Associated Press reported last week that Republican leaders were making plans to pair Harvey aid with an increase in the debt limit.
Other senior GOP aides said no final decision had been made, and Democrats, whose votes would be needed in the Senate, are cool to the approach.
“Providing aid in the wake of Harvey and raising the debt ceiling are both important issues, and Democrats want to work to do both,” Senate Democratic leader Chuck Schumer of New York and House Democratic leader Nancy Pelosi of California said in a joint statement Sunday. “Given the interplay between all the issues Congress must tackle in September, Democrats and Republicans must discuss all the issues together and come up with a bipartisan consensus.”