Crisis averted but troubles loom

Key Takeaways

  • Senate passed $480B increase in debt ceiling averting default, House returns on Tuesday to pass bill, Treasury estimates new deadline pushed until early December.
  • To pass ceiling increase required 10 Republican votes to invoke cloture and stop the Republican filibuster.  Leader McConnell led the effort, voted for cloture, but could only get 10 other Republicans to vote to avert default.  McConnell said he will not intervene next time.
  • Democrats continue to struggle with Build Back Better (BBB) Budget Reconciliation Bill funding President Biden’s agenda.  Agreement that number needs to be lowered from $3.5T but dilemma is whether to keep all the programs but at lower levels or cut some programs while fully funding program that stay in legislation.
  • Moderate Democrats have growing frustration with inability of leaders in House to pass Senate approved bipartisan $1T infrastructure bill.  Speaker announced October 31 as new target date to pass bipartisan bill.
  • December 3 shutdown threat needs to be addressed as Democrats will need Republican votes to pass funding bill (CR) and avoid a government shutdown.
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