Schumer Says Deal Reached on Short-Term Debt-Limit Extension

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Late night talks on extension failed to reach final deal

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The prospect of a breakthrough emerged Wednesday afternoon, when Mr McConnell proposed extending the debt limit until December, provided Democrats stick a dollar amount to the debt level. Treasury Secretary Janet Yellen has warned that her department could end its cash-conservation measures by October 18 if Congress does not act, telling a White House meeting on Wednesday that the country is “looking at a catastrophe”. Is.”

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The House will still need to approve any legislation that is expected to be signed into law by President Biden.

The debt limit does not authorize new spending, but allows the Treasury to raise funds to pay for expenses previously authorized by the government. Still, Republicans seek to force Democrats to exceed debt limits without any GOP help, trying to tie Democrats, at least in the eyes of voters, to higher debt levels, as the party uses those programs. chases that will cost trillions of dollars.

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Democrats have argued that both sides should be responsible for raising the debt limit, noting that limit increases or suspensions were bipartisan during the Trump administration.

Sen. Chris Murphy said, “We are prepared to take this resolution to prevent fiscal ruin, but we all have ourselves that the only thing Republicans are willing to do is to stop the disaster for three months and give us Ready to get back in this position.” (D., Conn.).

Mr McConnell said the resolution was intended to “protect the American people from a near-term Democrat-created crisis.”

Democrats have struggled to raise the debt limit 50-50 in the Senate because they need 60 votes to pass most of the legislation.

Given that dynamic, Democrats and Republicans had been fighting for weeks over the processes through which the Senate would enable an increase in the debt limit.

Instead of allowing Democrats to pass a bill through common law, Republicans insisted that Democrats should use a process called conciliation, which allows legislation to proceed with only a simple majority, But complex legislative moves are needed, including two marathon sessions of amendment votes known as “votes.” -A-Rama.”

Democrats, who have been using conciliation to pass Mr Biden’s legislative agenda, argued that adopting that process for debt limits would be too risky and time-consuming, and said the easiest way for Republicans The only way was to step aside. But other factors were at play: Under the rules governing reconciliation, Democrats could be forced to assign a dollar value to the new debt threshold level, more directly tying Democrats to higher debt, rather than just Suspend future date ranges.

That fight was shaping up to reinvent itself over several months, but the deal allows both sides to regroup. For Democrats, the delay will allow them to focus their intraparty talks on their multitrillion-dollar health, education and climate package as well as a parallel bipartisan infrastructure bill in the House.

Republicans, for their part, remove an immediate deadline and may continue to try to force Democrats to use reconciliation, saying that Democrats can no longer say they have enough time. There is a shortage.

Senate Democrats, who met behind closed doors with White House officials on Wednesday morning with chief domestic policy adviser Susan Rice, are not on a backup plan if they are unable to pick up the 10 Republicans needed to push most legislation. Were settled.

Democrats began discussing whether to reduce filibuster – a strategy that allows a minority to block legislation by collecting 40 out of 100 votes – to enable a debt-limit increase with a vote of 50 senators. For, with Vice President Kamala Harris. Glove. Sen. Joe Manchin (D., W.V.A.) effectively threw cold water on that plan on Wednesday when he indicated he would not support such a move, but the growing uproar between Democrats both May have helped push the parties to an agreement. .

write to Siobhan Hughes at [email protected]

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