In recent weeks, much of the focus on Capitol Hill has been over Democrats negotiating how best to advance the White House’s Build Back Better agenda. Yesterday, that focus shifted dramatically to a very different kind of challenge. NBC News reported midday:
President Joe Biden on Monday sought to ratchet up pressure on Republicans to work with Democrats on raising the debt limit, accusing Republicans of playing “Russian roulette” with the U.S. economy. Biden warned Americans that if Congress failed to act, mortgage rates would increase, retirement savings would go down and the U.S. could lose its financial credibility around the world. He called on Republicans to allow a vote on the debt ceiling this week.
When Republicans like Florida Sen. Rick Scott first started pushing for a debt-ceiling crisis in April, it seemed like an abstraction because the threat only existed on the horizon. That luxury is now over: The Treasury Department has told Congress that the United States will begin defaulting on its obligations in just 13 days. Senate Majority Leader Chuck Schumer has told members that he expects the chamber to resolve the matter this week, and he’s already scheduled a vote for tomorrow on a clean bill passed by the House last week.
For his part, Senate Minority Leader Mitch McConnell wrote to the White House yesterday, making clear that his Republican members will not vote to allow the United States to pay its own bills, and insisting that Democrats use a specific legislative procedure to defuse the GOP’s bomb: the budget reconciliation process.
As we discussed last month, it’s a critically important detail: Republicans aren’t just telling Democrats to extend the debt ceiling; Republicans want to force Democrats to extend the debt ceiling in a very specific way.
This is where the writing on the hostage note comes into focus: Republicans want to dictate the terms, giving the Democratic majority instructions as to how to prevent the GOP from causing a deliberate economic catastrophe.
And why, prey tell, are Republicans obsessed with forcing Democrats to govern through an obscure legislative procedure? Senate Minority Whip John Thune effectively gave away the game yesterday, telling NBC News, “The way to do it if they want to do it at 51 votes is to do it through reconciliation, which requires them to specify a number.”
The details get a little wonky, but there’s a subtle policy difference between extending the nation’s borrowing authority by suspending the debt ceiling until a specific date in the future and raising the debt ceiling by a specific amount of money: The former doesn’t set a dollar amount and the latter does.
And so, if Republicans can force Democrats to extend the debt ceiling by making them vote on a scary-sounding figure — say, $30 trillion, instead of $28 trillion — GOP operatives believe it will create a more potent political weapon.
In other words, Republicans are threatening the full faith and credit for the United States because they’re looking for a new toy to play with in the 2022 midterms. It’s a reminder of just how far the contemporary GOP has gone from serving as a governing party.
As for the road ahead, Congress is noticeably short on options.
Congress can simply extend the debt ceiling in a clean bill. Republicans have said they will use a filibuster to prevent this from happening, though Sen. Roy Blunt, a Missouri Republican who’s retiring next year, suggested yesterday that the GOP’s wall is starting to show some cracks. Whether Republicans would cave in time to prevent a disaster is unclear.
Congress can attach a debt-ceiling extension to some other bill. When Democrats tried this last week, Republicans refused to consider it.
Congress can incorporate a debt-ceiling extension to the Build Back Better agenda. Though several GOP senators pushed this approach last month, Democratic leaders have already ruled out this possibility, and there almost certainly isn’t enough time to jump through the procedural hoops to make it happen.
Congress can extend the debt ceiling through a separate reconciliation measure. The Senate Parliamentarian’s office yesterday said the GOP demand is procedurally possible. (For you legislative wonks out there, the parliamentarian’s ruling was based on Section 304 of the Congressional Budget Act, which we discussed in detail in March.) But Democrats still have no intention of doing this, largely because it would take two weeks and the default deadline is in 13 days.








