Top Line

House Speaker Nancy Pelosi (D-Calif.) said she wants House Democrats to try to raise the debt limit before the current session of Congress ends, as a tool for negotiating a Republican-controlled House debt limit. A step aimed at preventing using. other demands.

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Democrats’ “best shot . . . to do now,” Pelosi said Sunday on ABC This week, Responding to a question from George Stephanopoulos about whether he wants to raise the debt limit during a lame duck session of Congress, after which Republicans can take over the House.

Pelosi said she fears Republicans will use the fight over the US borrowing limit “as leverage” to cut Social Security spending and “reduce benefits for our seniors and others.”

It’s still unclear which party will control the House, but Democrats will hold a majority in the Senate for the next two years, which Pelosi said improved Democrats’ chances of raising the debt limit in the next session of Congress. However, the speaker said he hoped “we can do it in a lame duck.”

main background

The federal government is on track to reach the debt limit at some point next year—a cap on total borrowing. If Congress fails to authorize more borrowing, it could cause the government to default on its obligations, which most experts say will increase the cost of borrowing and put the economy in jeopardy. House Minority Leader Rep. Kevin McCarthy (R-Calif.) indicated in October that Republicans would refuse to raise the US borrowing limit without additional spending cuts, Punchbol news telling In October, "there comes a time when, well, we'll give you more money, but you have to change your current behavior." McCarthy did not say specifically which programs Republicans want to cut, but Democrats fear Medicare, Medicaid and Social Security could be on the chopping block. McCarthy, who is running for Speaker of the House if Republicans win a majority in the lower house, has also indicated that the GOP-controlled House could reduce funding to Ukraine.

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$31.4 trillion. This is the current US borrowing limit. Congress raised the limit to about $2.5 trillion in December 2021 and will need to lift the cap again next year to prevent the government from defaulting on its debt and legal obligations.

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Treasury Secretary Janet Yellen and Sen. Elizabeth Warren (D-Mass.) have also come out in support of raising the debt limit before the new congressional session begins. Yellen said she was moving to raise the Congressional debt limit "for all", and suggested the new limit should remain in effect for the duration of Biden's term, He said new York Times on Saturday. Failing to raise the debt limit, Yellen said, would result in a "devastating economic self-inflicted blow". Meanwhile, Warren urged Democrats to "make this lame-duck session of Congress the most productive in decades," beginning with the lifting of borrowing limits. op-ed In Times Published after Democrats regained control of the Senate on Saturday.

GOP debt limit threats set to revive rinkmanship with White House (Washington Post)

Scoop: Biden officials discussing lame-duck loan limit deal (axial)