(Washington Insider Magazine) -After weeks of partisan deadlock over the issue, Democrats and Republicans came to a deal on Thursday, 10/07/2021, that extended the nation’s debt limit until early December.
To be sent to President Joe Biden for his signature, the extension will need to be approved by the House. The House will vote on the bill on Tuesday, according to Majority Leader Steny Hoyer.
The Senate is scheduled to vote today on the final agreement reached by Majority Leader Chuck Schumer. It was revealed by a CNN aide familiar with the negotiations that the agreement includes raising the debt ceiling by $480 billion to make it to December 3 as required by the Treasury Department.
It was announced a day after Senate Minority Leader Mitch McConnell announced that he had floated a debt ceiling proposal in his weekly press conference, sparking negotiations between the two parties to reach an agreement.
Both parties have made clear that default cannot be avoided and that any economic consequences would be grave.
But even though the debt limit extension saves the immediate economy from dire consequences, it does not reduce the partisan discord over the issue. The issue is merely delayed for another time.
Putting the facts before the political spin, CNN’s Chris Cillizza reveals the important news.
The floor speech Schumer delivered moments after 10 Republicans joined Democrats to advance the bill was also sharply criticized by Democrats and several Republicans as too partisan.
In order to reduce the debt limit, Republicans have insisted that Democrats should act alone through the budget reconciliation process. In response, Democrats claim that issues of bipartisan responsibility need to go through a lengthy and unwieldy process, with too much risk of miscalculation.
Despite their fundamental differences, the parties will face off in early December.
Following the recent passage of a short-term extension to avert a government shutdown, lawmakers will face the expiration of government funding on December 3rd.
The Senate voted to end the filibuster in the debt ceiling agreement, which needed 60 votes to succeed, just before voting on the final vote Thursday evening. Together with the votes of Democrats from all caucuses, 11 Republican senators helped get the Senate over the procedural hurdle. The result was 61 to 38 votes in favor.
The Battle Lines
McConnell said on Thursday that the debt ceiling agreement gives Democrats more time to raise it by themselves, yet another sign that partisan battle lines remain clear.
The majority will no longer have an excuse of “a lack of time” to deal with it through the cumbersome budget process.
Despite the extra time, Democrats have already stated they have no interest in using the reconciliation process.
The Treasury Secretary, Janet Yellen, cautioned lawmakers that the federal government would run out of funds if Congress did not raise the debt ceiling by October 18.
Since the deadline is more of the best guess estimate than a set in stone deadline, Congress may not have even that long. Both sides were pushed harder this week to reach an agreement.
