Democrats explore new options to raise debt ceiling amid deepening stalemate with GOP

With gasoline time ahead of the Oct. 18 deadline, lunchtime Democrats have categorically rejected GOP’s demands to go through a tedious procedure known as “budget reconciliation,” arguing they shouldn’t hold out. account of the appeals of the leader of the GOP in the Senate, Mitch McConnell, and those in charge of a series of amendment votes that they would be forced to undergo during this complicated process.

Instead, they discussed a range of other Plan B options, including Biden using the authority under the 14th Amendment that says the validity of public debt “must not be called into question.” , the sources said. Democrats fully acknowledged that this idea had not been tested in the courts, but also said Republicans would risk blame for jeopardizing the confidence and credit of the United States if they pursued such a decision.

The other option discussed at lunch on Tuesday employed a complex parliamentary procedure – known on Capitol Hill as the nuclear option – that would essentially nullify the 60-vote requirement to break an obstruction to raise the debt ceiling, allowing a simple majority to do so instead. The issue was also raised during a private lunch last Thursday, the sources said, and Democrats said the idea of ​​making a temporary and one-time rule change was also being considered.

“We can create a single exception to the rules for the purpose of protecting the economic well-being of every American,” said a Democratic senator.

Yet taking that route would require the support of the 50 Democrats – including Manchin and Kyrsten Sinema of Arizona, both of whom have been fiercely opposed to weakening the 60-vote requirement and have not addressed the subject. in camera. lunch, the sources said.

Manchin told CNN on Monday “to forget about the obstruction,” which meant changing the rules was not an option for him. Yet after lunch on Tuesday, Manchin did not say whether he would oppose a “carve out” in the filibuster rules to allow the debt ceiling to be raised. He told CNN the solution was now in the hands of Democratic Senate Leader Chuck Schumer and McConnell to strike a deal on the issue.

“At the end of the day, they have to get out of this,” Manchin said. “The leaders need to come together and fix this for the good of this country. ”

Manchin added: “We are not going to default. I guarantee you this country will not default. This Congress will not fail. This is going to be painful, I think, for some people. But we are not going to default. fault.”

GOP strongly opposes granting debt ceiling votes

Democrats say they hope Republicans back down to avoid the prospect of economic disaster.

“Right now it’s two weeks away and I’m confident Republicans – at least some of them – will emerge on this,” Senate Budget Chairman Bernie Sanders, an independent from the Senate, said. Vermont talking to the Democrats.

White House officials have contacted top U.S. business leaders about a possible meeting with Biden, a source familiar to CNN told CNN. If the meeting comes to fruition on Wednesday, it would be seen as an effort to increase pressure on Republicans.

But Republicans have aligned themselves closely with McConnell, who has warned since this summer that the GOP will not lift a finger to raise the debt limit.

With less than 14 days to go, Congress is flirting with fiscal calamity. In 2011, when Congress was in a similar confrontation over the debt limit, the country’s credit rating was lowered. But so far Democrats have asked about starting the special budget process, questioned their leaders, or have widely argued that it is too late.

“I do not see how reconciliation can be done without debt degradation since we are already in the area,” said Senator Mark Warner, a Democrat from Virginia.

Schumer added: “Reconciliation is a long and complicated process. We have shown the best way forward. We are moving in that direction.”

The budget process would require the Senate to engage in a long process of debate, two marathon voting sessions known as vote-a-rama, and ultimately require Republicans to appear on committees to help Democrats. to move the process forward.

A Senate expert told CNN it could be over in about a week if Republicans cooperate. And Senate GOP Whip John Thune said on Tuesday his party would be willing to speed up the process if Democrats followed that route.

“They say it’s too heavy, it takes too long,” said the South Dakota Republican. “Well, that can be resolved by agreement. ”

But Democrats say Republicans cannot be trusted to get a deal on this issue because any senator can object to the process being extended. And already, Republicans have opposed Schumer’s efforts to allow the debt ceiling to be raised to a threshold of 51 votes – just with Democratic votes – because the GOP has instead demanded that they use the lengthy budget process to bypass an obstruction and eat up precious ground time.

Democrats are slowly heading towards a no-win situation. As part of the budget process, Democrats would be required to specify the exact amount by which they would increase the country’s borrowing limit even as debt stands at nearly $ 29 trillion. That number would put Democrats facing re-election in a difficult political position. Under the current legislation they are trying to push through on Wednesday, Democrats would “suspend” the debt limit until after the 2022 midterm without specifying a number.

But if the Democrats don’t resolve the deadlock, their party – which controls all levers of government – could face most of the blame from voters hurt by Washington’s standoff.

“There are a lot of options, but Democrats have a majority and we have to act on it,” said Senator Tim Kaine, a Democrat from Virginia. “If Republicans are going to flirt with default, we can point it out, but at the end of the day we have to make sure the nation doesn’t default.”