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- Biden ignored GOP debt ceiling threats on Wednesday.
- “No, they are not going to let us fail,” he told reporters.
- The two sides are on the brink of confrontation as Republicans refuse to raise the debt ceiling.
President Joe Biden has dismissed threats from Republicans saying they will not reach a deal on raising the debt ceiling, a further sign the two sides are on the brink of a major clash that increases the threat of fault.
“No, they are not going to let us fail,” he told reporters. “$ 8 trillion is under Republicans watch.”
—JM Rieger (@RiegerReport) August 11, 2021
Biden’s remarks come just a day after 46 Senate Republicans signed a pledge led by Sen. Ron Johnson of Wisconsin, agreeing they won’t help Democrats raise the debt ceiling – something the GOP did under President Donald Trump, but now says Democrats should do it on their own using a procedure known as reconciliation.
“We must not default on our debts under any circumstances,” the letter said. “If Democrats threaten to default, it will only be because they refuse to vote for the increase in the debt ceiling made necessary by their own irresponsible spending.”
Only four Republicans have retained their signatures: Sens. Lisa Murkowski from Alaska, Susan Collins from Maine, John Kennedy from Louisiana and Richard Shelby from Alabama.
Democrats plan to push for a $ 3.5 trillion spending plan through reconciliation, which allows bills to pass with only a simple majority instead of the 60 votes typically needed in the Senate. The nascent Democratic plan does not include a hike in the debt limit. It is possible to do this in reconciliation, but it can scramble the legislative program of the Democrats.
Treasury Secretary Janet Yellen recently called on Congress to raise the debt ceiling in a bipartisan fashion. The Treasury Department is currently funding federal operations using its emergency powers because Congress missed the July 31 deadline to raise or suspend the debt limit. The Treasury could run out of cash reserves next month or in October. If Congress does not act before this point, it could cause a devastating default.
Raising the debt limit does not pave the way for additional federal spending – on the contrary, it allows the government to repay its debt and other financial obligations.
Senate Minority Leader Mitch McConnell served as the Republican leader, insisting the GOP will delegate this task to Democrats. Republicans are demanding spending cuts in return for their support.
“If they want 50 Democratic fixed-level votes to spend billions and billions more, they can find 50 Democratic votes to fund it,” he told the Senate on Tuesday. “If they don’t want the Republicans to contribute, they don’t need our help. It couldn’t be easier.”
Senate Majority Leader Chuck Schumer did not rule out an increase in debt on Wednesday using only Democratic votes. But he echoed Biden and said he believes Republicans won’t cause a devastating financial crash.
“I can’t believe the Republicans would let the country default,” Schumer said at a press conference. “It’s always been bipartisan with the debt ceiling. When Trump was president, I think Democrats joined in raising it three times.”
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