Senate Avoids a US Debt Disaster, Votes to Extend Borrowing

October 8, 2021by Kevin Freking, Alan Fram and Alexandra Jaffe, Associated Press
Senate Avoids a US Debt Disaster, Votes to Extend Borrowing
Senate Majority Leader Chuck Schumer of N.Y., speaks with reporters as he walks to his office on Capitol Hill, Thursday, Oct. 7, 2021, in Washington. (AP Photo/Alex Brandon)

WASHINGTON (AP) — The Senate has dodged a U.S. debt disaster, voting to extend the government’s borrowing authority into December and temporarily avert an unprecedented federal default that experts warned would devastate the economy and harm millions of Americans.

The party-line Democratic vote of 50-48 in support of the bill to raise the government’s debt ceiling by nearly a half-trillion dollars brought instant relief in Washington and far beyond. However, it provides only a reprieve. Assuming the House goes along with the Senate’s Thursday night vote, which it will, Republican and Democratic lawmakers will still have to tackle their deep differences on the issue once more before yearend.

That debate will take place as lawmakers also work to fund the federal government for the new fiscal year and as they keep up their bitter battling over President Joe Biden’s top domestic priorities — a bipartisan infrastructure plan with nearly $550 billion in new spending as well as a much more expansive, $3.5 trillion effort focused on health, safety net programs and the environment.

Easing the crisis at hand — a disastrous default looming in just weeks — the Republican Senate leader, Mitch McConnell of Kentucky, offered his support for allowing a short-term extension of the government’s borrowing authority after leading solid GOP opposition to a longer extension. He acted as Biden and business leaders ramped up their concerns that a default would disrupt government payments to millions of Americans and throw the nation into recession.

The GOP concession to give up its blockade for now was not popular with some members of McConnell’s Republican caucus, who complained that the nation’s debt levels are unsustainable. 

“I can’t vote to raise this debt ceiling, not right now, especially given the plans at play to increase spending immediately by another $3.5 trillion,” Sen. Mike Lee of Utah said shortly before the vote.

Sen. Ted Cruz of Texas said the Democrats had been on “a path to surrender” on the process used to lift the debt cap, “and then unfortunately, yesterday, Republicans blinked.”

But Sen. Lisa Murkowski of Alaska was among those voting to end debate and allow a vote on the bill.

“I’m not willing to let this train go off the cliff,” she said.

Eleven Republicans voted to end debate, providing the threshold needed to move the bill to a final vote. However, no Republicans sided with Democrats in the final vote for the measure. McConnell has insisted that the majority party will have to increase the debt ceiling on its own. 

Congress has just days to act before the Oct. 18 deadline after which the Treasury Department has warned it will quickly run short of funds to handle the nation’s already accrued debt load. 

The House is likely to approve the measure next week. After the Senate action, Majority Leader Steny Hoyer announced the House is being called back to session Tuesday evening for votes.

Republican leaders worked through the day to find the 10 votes they needed from their party to advance the debt limit extension to a final vote, holding a private huddle late in the afternoon. It was a long and “spirited” discussion in the room, said Sen. Josh Hawley of Missouri.

McConnell allowed for an airing of all views and ultimately told the senators he would be voting yes to limit debate. 

The vote started with McConnell and South Dakota Sen. John Thune, the second-ranking Republican, waiting patiently as slowly, but surely, nine of their GOP colleagues came and gave the anticipated thumbs up. When Cruz voted no, McConnell joked: “I thought you were undecided. Thanks for showing up.”

The White House signaled Biden’s support, with principal deputy press secretary Karine Jean-Pierre saying the president would sign a bill to raise the debt limit when it passed Congress. Jabbing the Republicans, she also said, “It gives us some breathing room from the catastrophic default we were approaching because of Sen. McConnell’s decision to play politics with our economy.”

Wall Street rallied modestly Thursday on news of the agreement.

The accord sets the stage for a sequel of sorts in December, when Congress will again face pressing deadlines to fund the government and raise the debt limit before heading home for the holidays.

The $480 billion increase in the debt ceiling is the level that the Treasury Department has said is needed to get safely to Dec. 3.

“I thank my Democratic colleagues for showing unity in solving this Republican-manufactured crisis,” said Senate Majority Leader Chuck Schumer of New York. “Despite immense opposition from Leader McConnell and members of his conference, our caucus held together and we have pulled our country back from the cliff’s edge that Republicans tried to push us over.”

McConnell saw it quite differently.

“The pathway our Democratic colleagues have accepted will spare the American people any near-term crisis, while definitively resolving the majority’s excuse that they lacked time to address the debt limit through (reconciliation),” McConnell said Thursday. “Now there will be no question: They’ll have plenty of time.

McConnell and fellow Senate Republicans still insist that the Democrats go it alone to raise the debt ceiling longer term. Further, McConnell has insisted that Democrats use the same cumbersome legislative process called reconciliation that they used to pass a $1.9 trillion COVID-19 relief bill and have been employing to try to pass Biden’s $3.5 trillion measure to boost safety net, health and environmental programs.

On Wednesday, Biden had enlisted top business leaders to push for immediately suspending the debt limit, saying the approaching deadline created the risk of a historic default that would be like a “meteor” that could crush the U.S. economy and send waves of damage worldwide.

At a White House event, the president shamed Republican senators for threatening to filibuster any suspension of the $28.4 trillion cap. He leaned into the credibility of corporate America — a group that has traditionally been aligned with the GOP on tax and regulatory issues — to drive home his point as the heads of Citi, JP Morgan Chase and Nasdaq gathered in person and virtually to say the debt limit must be lifted.

“It’s not right and it’s dangerous,” Biden said of the resistance by Senate Republicans.

Once a routine matter, raising the debt limit has become politically treacherous over the past decade or more, used by Republicans, in particular, to rail against government spending and the rising debt load. 

___

AP writers Lisa Mascaro, Farnoush Amiri and Josh Boak in Washington and AP Business Writer Damian J. Troise in New York contributed to this report.

A+
a-
  • debt ceiling
  • Senate
  • In The News

    Health

    Voting

    Political News

    March 28, 2024
    by Dan McCue
    Elections Task Force Prosecutes 2020 ‘Vigilantes,’ Seeks More Civic Dialogue

    PHOENIX, Ariz. — A 46-year-old Ohio man has been sentenced to 30 months in prison for sending death threats to... Read More

    PHOENIX, Ariz. — A 46-year-old Ohio man has been sentenced to 30 months in prison for sending death threats to an Arizona election official. The sentencing of Joshua Russell, of Bucyrus, Ohio, came after he pleaded guilty to one count of making a threatening interstate communication.... Read More

    March 28, 2024
    by Dan McCue
    Vice President Harris Rolls Out First Government-Wide Policy to Mitigate AI Risks

    WASHINGTON — Vice President Kamala Harris on Wednesday rolled out the Biden administration’s first government-wide policy intended to mitigate the... Read More

    WASHINGTON — Vice President Kamala Harris on Wednesday rolled out the Biden administration’s first government-wide policy intended to mitigate the risks associated with artificial intelligence while still enabling its use to advance the public interest. The new policy, which is being issued through the White House... 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

    News From The Well
    scroll top