Debt Ceiling Exit Strategy
The week started with no clear strategy to raise the debt ceiling which Treasury Secretary Yellen had estimated would be reached on or around December 15. However, Senators McConnell and Schumer, working with Speaker Pelosi, unveiled a rather complex scheme to raise the ceiling where Republicans permitted a vote to increase the ceiling but one that would pass with only Democratic votes.
Under regular order a bill to increase the debt ceiling, like any other bill except Budget Reconciliation, is subject to a filibuster and hence requires 60 votes to invoke cloture and stop the filibuster. The scheme approved this week saw Congress pass a bill that allows for the debt ceiling to be passed with only 51 votes which ended the threat of a filibuster on the ceiling increase.
The challenge was that the bill allowing for the one time vote to increase the debt ceiling with only 51 votes was itself subject to a filibuster requiring 60 votes to stop the filibuster and pass the bill. Republican Leader McConnell put his reputation on the line and rounded up 14 Republican Senators to vote to stop the filibuster and pass the debt ceiling bill. Next week the Senate will approve the increase in the debt ceiling with all 51 votes coming from Democratic Senators and the Vice President breaking the 50/50 tie for passage on a vote of 51/50.
Later next week the House will approve the increase in the debt ceiling and then President Biden will sign the bill. The increase will be several trillion dollars allowing the government to operate under the new debt ceiling until after the 2022 elections. The strategy developed in part by Republican Leader McConnell fulfills his goals of avoiding a US Government default but the actual vote to increase the ceiling carried exclusively by Democrats.
The vote to increase the debt ceiling while necessary is also one of the most politically difficult votes as it is tailor made for a 30 second attack ad. McConnell sold the bill to Senate Republicans by pointing out that in 2022 Republican candidates will be able to attack Democratic incumbents for being irresponsible big spenders by increasing the debt ceiling; a vote that in fact most Republicans cast when Donald Trump was President.
The bottom line is that while the politics may have been convoluted and messy, the debt ceiling will be increased and the risk of a government default taken off the table for at least a year.
More from the author
Articles Read 1/2
🎁 Unlock 1 extra article by joining our Community!
Stay up to date with the latest articles. You’ll even get special recommendations weekly.
Already have an account? Sign In 1c9d56-1da792-dda78d-c5a21e-a879ac
Already have an account? Sign In 1c9d56-1da792-dda78d-c5a21e-a879ac
