Democrats Say Debt Limit Increase Will Be Part of Short-Term Spending Bill

September 20, 2021 by Dan McCue
Democrats Say Debt Limit Increase Will Be Part of Short-Term Spending Bill
House Nancy Pelosi, D-Calif., meets with reporters at the Capitol in Washington. (AP Photo/J. Scott Applewhite)

WASHINGTON — House Democrats will pair a continuing resolution to keep the government open through December with an increase in the debt limit. The package is expected to be put up for a vote by next week, House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Charles Schumer, D-N.Y. announced Monday afternoon.

In a joint statement, Pelosi and Schumer said the legislation will pass the House before the fiscal deadline comes and goes a week from Thursday.

In addition to avoiding a “needless government shutdown,” the bill will suspend the nation’s debt limit through December 2022.

The bill, which will fund the government through December, also includes emergency disaster relief and funding to help resettle Afghan evacuees.

The announcement came after several weeks of debate over the best way forward regarding the government’s borrowing limit and preventing a default on the national debt.

Senate Republicans had vowed to oppose the legislation in a bid to put the brakes on President Joe Biden’s $3.5 trillion spending package.

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,” the speaker and majority leader said. 

Pelosi and Schumer went on to say that the 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 Sens. Cassidy, Romney, Portman, Collins and others,” and was ultimately voted for by more than 40 Republicans including Senate Minority Leader Mitch McConnell, R-Ky. and signed into law by the previous president.

But my pairing the continuing resolution with the debt-limit increase — something McConnell has effectively been daring them to do for weeks, the speaker and majority leader are playing a bet of their own — that McConnell and his GOP colleagues wouldn’t dare oppose the package and bring on a government shutdown on Oct. 1.

“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,” Pelosi and Schumer said.

“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,” they added.

Separately, the National League of CIties urged members of Congress to work together to address the debt limit, “before harm is done to our national economy, and particularly to cities, towns, and villages.”

NLC Executive Director Clarence E. Anthony wrote, “Cities, towns, and villages across America are starting to rebuild thanks to the American Rescue Plan Act of 2021’s Coronavirus State and Local Fiscal Recovery Funds, the CARES Act Coronavirus Relief Fund, and other necessary emergency funds. Hitting the debt ceiling could have negative implications for the U.S. economy that could have devastating downstream impacts on municipalities just as they are beginning to recover.”

“Further, breaching the debt ceiling puts federal funding in peril for essential programs such as the Federal Emergency Management Agency that supports municipalities,” he added. “Following Hurricane Ida, communities from Louisiana to New York are relying on FEMA for help and any slowdown in funds reaching residents along the storm’s path would be devastating.”

Other economic leaders and organizations urging Congress to act on the debt limit include Business Roundtable, Amazon CEO Andy Jassy, Center for American Progress, Goldman Sachs, JP Morgan, and leading trade groups in the banking and financial services industry, among others.

A+
a-
  • continuing resolution
  • debt limit
  • emergency disaster relief
  • House Democrats
  • In The News

    Health

    Voting

    Congress

    March 27, 2024
    by TWN Staff
    Rep. Cleaver New Co-Chair of House Renewable Energy and Energy Efficiency Caucus

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency... Read More

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency Caucus. He was invited to serve as co-chair by Sens. Jack Reed, D-R.I., and Mike Crapo, R-Idaho, the co-chairs of the Senate Renewable Energy and Energy... Read More

    March 27, 2024
    by Dan McCue
    New Dem Chair Kuster Announces Retirement Following 2024 Election

    CONCORD, N.H. — Rep. Annie Kuster, D-N.H., who, among other things, is the current chair of the New Democrat Coalition... Read More

    CONCORD, N.H. — Rep. Annie Kuster, D-N.H., who, among other things, is the current chair of the New Democrat Coalition in the House, revealed Wednesday that she will not seek reelection to Congress this year. In a lengthy statement released by her office, Kuster gives no... Read More

    March 25, 2024
    by Dan McCue
    CPAC Releases Ranking of Most Conservative Members of Congress

    WASHINGTON — The Conservative Political Action Conference, also known as CPAC, on Monday released its annual ranking of members of... Read More

    WASHINGTON — The Conservative Political Action Conference, also known as CPAC, on Monday released its annual ranking of members of the House and Senate based on their conservative bona fides or lack thereof. To produce this year’s scorecard, the CPAC foundation’s Center for Legislative Accountability analyzed... Read More

    March 22, 2024
    by Dan McCue
    After a Decade on Capitol Hill, Brad Howard Steps Out on His Own

    WASHINGTON — After a decade on Capitol Hill, most recently as chief of staff for former Rep. Stephanie Murphy, D-Fla.,... Read More

    WASHINGTON — After a decade on Capitol Hill, most recently as chief of staff for former Rep. Stephanie Murphy, D-Fla., and communications director of the Blue Dog Coalition, Brad Howard knew it was time for change. “It was time to move into the private sector,” he... Read More

    March 22, 2024
    by Dan McCue
    Greene Files Motion to Vacate Speaker’s Chair

    WASHINGTON — For the second time in five months, a member of the Republican Conference in the House has filed... Read More

    WASHINGTON — For the second time in five months, a member of the Republican Conference in the House has filed a motion to vacate the chair of the party’s speaker. But this time, Rep. Marjorie Taylor Greene, R-Ga., says the motion is intended merely as a... Read More

    March 22, 2024
    by Dan McCue
    Gallagher to Leave Congress April 19

    WASHINGTON — Rep. Mike Gallagher, R-Wis., who already announced he would not seek reelection, surprised many on Capitol Hill on... Read More

    WASHINGTON — Rep. Mike Gallagher, R-Wis., who already announced he would not seek reelection, surprised many on Capitol Hill on Friday by announcing he plans to leave April 19, several months before his current term is up. Gallagher’s impending departure will further shrink the razor-thin Republican... Read More

    News From The Well
    scroll top