Democrats unveil new plan to fund government, suspend debt ceiling as major showdown with GOP looms
Source: Washington Post
House and Senate Democrats on Monday unveiled a measure that would fund the government through December while staving off a potential default on U.S. debts into next year, setting up a last-minute scramble ahead of key fiscal deadlines on Capitol Hill.
The plan immediately faced political headwinds, as Senate Minority Leader Mitch McConnell (R-Ky.) reaffirmed that Republicans would oppose any increase in the country’s borrowing limit, even if it is attached to a measure preventing a shutdown — part of a broader GOP-led effort to scuttle President Biden’s economic agenda.
As they presented their plan, Democrats on Monday once again sounded dire warnings about consequences of failure, which they said could destabilize global markets, shutter critical federal services during a pandemic and hold back assistance to millions of Americans in the aftermath of storms that battered the Gulf Coast and parts of the Eastern Seaboard. They urged Republicans to join them in adopting the measure, arguing that the debt ceiling helps cover prior spending, including the roughly $900 billion coronavirus relief package approved by both parties last year.
“Addressing the debt limit is about meeting obligations the government has already made, like the bipartisan emergency COVID relief legislation from December as well as vital payments to Social Security recipients and our veterans,” said House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Charles E. Schumer (D-N.Y.) in a statement Monday. " Furthermore, as the Administration warned last week, a reckless Republican-forced default could plunge the country into a recession."
Read more: https://www.washingtonpost.com/us-policy/2021/09/20/congress-shutdown-debt-ceiling-biden/
They need some kind of CR at least initially. And technically, the debt ceiling can be addressed via reconciliation and can happen THIS fiscal year, since that type hasn't been used in FY2021 yet. I think Yellen said they can go into October with the usual "extraordinary measures".
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September 20, 2021 Press Release
Washington, D.C. – House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer released the following statement on the upcoming Continuing Resolution legislation to keep government open, which includes a suspension of the debt limit, emergency disaster relief and funding to help resettle Afghan evacuees:
“This week, the House of Representatives will pass legislation to fund the government through December of this year to avoid a needless government shutdown that would harm American families and our economic recovery before the September 30th deadline. Both Republicans and Democrats have priorities they want to see addressed in the regular order appropriations process for Fiscal Year 2022, and an extension of government funding through December will provide an appropriate amount of time for that bipartisan, bicameral process to come to completion. In addition to avoiding an unnecessary government shutdown, this must-pass legislation will include the Administration’s request to provide emergency funding to help those devastated by the recent natural disasters as well as to help resettle our Afghan evacuees.
“The legislation to avoid a government shutdown will also include a suspension of the debt limit through December 2022 to once again meet our obligations and protect the full faith and credit of the United States. We believe a suspension of the debt limit through December 2022 would provide an amount of time commensurate with the debt incurred as a result of passing last winter’s bipartisan $908 billion emergency COVID relief legislation, which was authored by Republican Senators Cassidy, Romney, Portman, Collins and others – and ultimately voted for by more than 40 Republicans – including Senator McConnell – and signed into law by the previous president.
“The American people expect our Republican colleagues to live up to their responsibilities and make good on the debts they proudly helped incur in the December 2020 ‘908’ COVID package that helped American families and small businesses reeling from the COVID crisis.
“Addressing the debt limit is about meeting obligations the government has already made, like the bipartisan emergency COVID relief legislation from December as well as vital payments to Social Security recipients and our veterans. Furthermore, as the Administration warned last week, a reckless Republican-forced default could plunge the country into a recession.
“We look forward to passing this crucial legislation with bipartisan support through both chambers and sending to the president’s desk in the coming weeks.”
https://www.speaker.gov/newsroom/92021-0
