Senate Minority Leader Mitch McConnell cut a short-term deal with Democrats suspending the debt ceiling and averting a national default allowing them to pass and wholly own a permanent solution to the problem by the end of the year.
“Republican and Democratic members and staff negotiated through the night in good faith,” McConnell stated on Thursday. “The Senate is moving toward the plan I laid out yesterday to spare the American people a manufactured crisis.”
McConnell vowed on Wednesday that Republicans would not filibuster a temporary extension of the debt limit as long as Democrats put a dollar amount on the increase in funding in an effort to give them more time to enact a long-term solution on their own.
Senate Majority Leader Chuck Schumer announced on Thursday that both sides reached a deal for an extension of the nation’s debt ceiling through early December. “We have reached an agreement to extend the debt ceiling through early December and it’s our hope that we can get this done as soon as today,” Schumer said on the floor of the Senate.
(Video Credit: Forbes Breaking News)
“To protect the American people from a near-term Democrat-created crisis, we will also allow Democrats to use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December,” he said in a statement via Twitter.
“This will moot Democrats’ excuses about the time crunch they created and give the unified Democratic government more than enough time to pass standalone debt limit legislation through reconciliation,” he emphasized.
McConnell reiterated his other compromise, stating that Republicans would be open to discussing a longer-term bipartisan debt ceiling increase if Democrats get rid of their massive human infrastructure bill. Democrats refuse to even consider that possibility.
“If our colleagues would instead prefer a more traditional bipartisan discussion around basic governance, they can stop trying to ram through yet another reckless taxing and spending spree. … That would be the path toward that kind of discussion,” he remarked.
My new statement on the Democrats’ self-created debt limit crisis: pic.twitter.com/XwuqyS9oZ0
— Leader McConnell (@LeaderMcConnell) October 6, 2021
President Biden and Democrats have been applying considerable pressure on McConnell to blink on the debt ceiling.
“Not only are Republicans refusing to do their job, but they’re threatening to use their power to prevent us from doing our job — saving the economy from a catastrophic event,” Biden proclaimed on Monday.
White House Press Secretary Jen Psaki stated Wednesday that Democrats are happy to be “the adults in the room,” and then said Republicans should endorse their monstrous spending spree.
Although a default has been averted, for now, Republicans are determined to make the Democrats act alone in addressing the debt limit which they can do in a number of ways. It appears that the Democrats are insisting the Republicans support it solely so they won’t be the only ones to blame as the economy tanks and inflation and taxes soar.
That’s not all the Biden administration will have to contend with. They will also have to deal with the expiration of government funding during the same time frame.
According to CNN, an aide familiar with negotiations stated that the deal Schumer announced on Thursday will increase the debt ceiling by $480 billion, which is how much the Treasury Department told Congress it would need to get to December 3.
.@SenSchumer: "I have some good news…We have reached agreement to extend the debt ceiling through early December, and it's our hope that we can get this done as soon as today." pic.twitter.com/it4ClRSvPX
— CSPAN (@cspan) October 7, 2021
“It would have been a global economic collapse if, in fact, the wealthiest nation on earth did not pay its debt,” Senate Budget Committee Chairman Bernie Sanders told reporters on Thursday.
“We are going to pay our debts. We have two months to figure out where we go,” Sanders declared, referring to the stop-gap increase.
Treasury Secretary Janet Yellen had warned Congress that the federal government would likely run out of cash by October 18 unless they raised the debt ceiling.
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