Anxious Democrats Launch Plan B: Raise Debt Ceiling During Party Line Vote



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And on Wednesday, the chairman of the House Budget Committee insisted that procedural hurdles and time constraints would prevent the party from using the budget process to raise the debt ceiling in time to avoid default, an offer aimed at putting pressure on leading Republicans to agree to suspend the nation’s borrowing limit in a bipartisan vote.

“Oh, yeah,” Rep. Jim Cooper, a moderate Democrat from Tennessee, said when asked if he would support using the budget process to raise the debt ceiling if Republicans did not grant them the. vote in the Senate.

“It’s a top national priority to avoid default – that’s no excuse,” Cooper told CNN on Wednesday. “So you have to do whatever it takes to avoid the default. You can’t let America default. Period.”

Powerful House Ways and Means Committee chairman Richard Neal told CNN he would support action to raise the debt ceiling with only Democratic votes throughout the budget process.

“If we had to do it, I would,” said Neal, who is a Democrat from Massachusetts. “I mean the idea that America would default on debt is so far removed from anything I’ve ever entertained or thought about since I’ve been here. I mean, I’m amazed we even have these moments. . ”

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When asked again if he would be in favor of Democrats raising the debt ceiling themselves if the GOP’s stance does not change, Neal reiterated, “I would be in favor of paying our debts, yes. ”

And Democratic Representative Haley Stevens, whose Michigan district has been targeted by Republicans for 2022, said when asked to raise the debt limit with only Democratic votes: “We have to do what it is necessary to avoid a defect. ”

The comments – echoed by a number of other House and Senate Democrats – could undermine the rigid stance of Democratic leaders, who have so far refused to publicly consider using the budget process to raise the cap for debt on a straight line vote. .

Instead, they tied a suspension of the debt limit to a bill to be passed to fund the government by the September 30 deadline, daring Republicans to block it and risk default and failure. potentially catastrophic shutdowns of federal agencies.

Still, Republicans aren’t blinking, and only a handful have left open the option of supporting the stopgap measure, not least because the package includes billions in aid to communities hard hit by natural disasters, such as in Louisiana.
“Not 10, no,” GOP Senate Whip John Thune of South Dakota said when asked Wednesday if there would be enough Republicans to break a filibuster on the package.

Pointing out about trillions more in taxes and spending that Democrats want to push along straight party lines throughout the budget process, Thune said, “If they do all of this with 51 votes, they will increase the debt ceiling with 51 votes. ”

New York Senate Majority Leader Chuck Schumer and California House Speaker Nancy Pelosi – and many other Democrats – have been furious at the GOP position, saying their party has helped Republicans drop the ceiling debt three times under then President Donald Trump, including after the 2017 GOP tax law was approved by the same partisan budget process. And Democrats are quick to note that raising the debt ceiling allows the United States to pay bills already piled up.
Democrats face GOP deadlock on raising debt ceiling as time presses

“Are we hostages of Republicans threatening to blow up part of the economic system because they want to do it for politics?” asked Senator Elizabeth Warren, a progressive Democrat from Massachusetts who is a member of Schumer’s leadership team. “It’s just not where we should be as a nation.”

Failure to raise the debt ceiling on time could stop the payments millions of Americans rely on, including federal workers’ paychecks, Medicare benefits, military salaries, government reimbursements. taxes, social security checks and payments to federal contractors. A memo released by the White House last week to state and local authorities listed several programs that would be halted if Congress failed, including disaster relief, Medicaid, the children’s health insurance program, infrastructure, education, public health and child nutrition.

Six former treasury secretaries on Wednesday urged congressional leaders to raise the debt ceiling, saying an “unprecedented default” could “cause serious damage to the economy and national security” and “threaten the economic growth “.

Schumer did not respond directly to a question on Tuesday when asked whether Democrats themselves would raise the debt ceiling if they had to, instead saying it was imperative to do so in a bipartisan fashion. as requested by Secretary of the Treasury Janet Yellen.

Rep. John Yarmuth, a Democrat from Kentucky who is chairman of the House Budget Committee, said on Wednesday that he and his staff had explored the possibility of going through the reconciliation process to increase the debt limit – and he has insisted that this was not possible. to remove it.

“You can’t do it,” Yarmuth said Wednesday. “The problems are almost insurmountable. And you certainly couldn’t have done it in time to avoid a fault.”

Yarmuth also made it clear Pelosi’s resistance.

“Rarely have I heard the speaker and leaders more emphatic about anything they are not going to do with reconciliation,” Yarmuth said, referring to the budget process.

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Democrats have largely resisted talking about what would happen next if Republicans blocked their bill to raise the debt ceiling and fund the government until mid-December, arguing Republicans had no other choice. choice than to change your mind.

“I have no doubts that the Republican Party – at least some of them – will come to their senses and not allow us to default,” Senate Budget Chairman Bernie Sanders, a Vermont independent who caucus with the Democrats.

Without GOP support, Democrats have two main options. One would allow them to revise their current budget resolution, a process fraught with procedural hurdles. The other option would be to roll out a little-used part of the finance law, which allows them to raise the debt ceiling after approving a separate budget resolution in both chambers. It would take time to prosecute and get Democrats to engage in two more rounds of so-called Senate voting-a-ramas, a marathon series of floor amendment votes that only take place during the process. budgetary.

This route, however, would force Democrats to take tough votes.

Part of the resistance to increasing the debt ceiling has been that, unlike suspending or suspending the debt ceiling, increasing it would require Democrats to include an exact dollar figure of how much they wish to increase the debt ceiling. debt of the country. For the Democrats running for re-election, this is a ready-made campaign announcement that leaders are fully aware could be politically damaging.

Yet some argue that raising the debt ceiling may not be as controversial as it once was.

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Senator Tim Kaine, a Virginia Democrat on the budget committee, told reporters he didn’t have a clear idea of ​​how the debt ceiling was being raised, he just wanted to make sure it happened. .

Other Democrats hoped their leadership would repeatedly force Republicans to vote on legislation to raise the cap, and that included maintaining the increase tied to the government funding bill.

“It looks like we’ll have to give Republicans multiple chances not to terrorize the US economy,” said Sen. Chris Murphy, Democrat of Connecticut.

But whether Republicans block the bill in the Senate, as expected, exactly what Democrats do remains to be seen – and many on Capitol Hill have little idea what happens next.

“We’re going to throw small bricks,” said Representative John Garamendi, a Democrat from California, when asked what Democrats would do if the GOP blocked raising the debt ceiling.

He let out a laugh, then walked over to the House floor.

CNN’s Alex Rogers and Morgan Rimmer contributed to this report.

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