Democrats could include the debt ceiling hike in their budget reconciliation bill currently under debate, multiple sources tell CNN. But the most likely scenario is that Democrats could tie the debt ceiling to a financing bill to pass in late September, leaving Republicans to decide whether to vote to default and shut down the government at the same time. . The Treasury Department has several methods available to delay the effects of the debt ceiling until the fall, as the fiscal year ends on September 30.
If Democrats included the debt ceiling hike in reconciliation, lawmakers would have to pick what the new borrowing limit should be in the legislation, given the special fiscal rules.
The issue is seen as politically insidious, but critical to avoiding a default. Republicans will no doubt be using this as a topic of conversation in the run-up to the 2022 midterms as they try to regain the majority in both houses of Congress. On Wednesday, Sen. Lindsey Graham, a Republican from South Carolina, holds a news conference about what he describes as “the Democrats’ reckless tax and spending wave.”
However, Republicans voted to approve a raise in the debt ceiling under former President Donald Trump, and McConnell fails to mention that members approved an additional $1.4 trillion in spending under his own Senate leadership last year. fight the coronavirus and fund the federal government. government.
House Ways and Means chairman Richard Neal, a Massachusetts Democrat, said last month that he wants to intervene “earlier rather than later” to raise the national debt ceiling.
“I think raising the debt ceiling sooner rather than later is a good idea,” Neal said, adding that the length of the extension “would be negotiated”.