Congress Acts on Debt Ceiling

L . Thomas Block
Key Takeaways
  • House and Senate pass resolution to debt-ceiling issue, with legislation to go through mandatory "engrossment" before heading to the Oval Office.
  • Debt ceiling will be suspended until after 2024 elections, and Republicans win concessions on energy, tax, welfare, and spending-cap issues.
  • The bill does not preclude additional spending for emergencies such as natural disasters, national security, or assistance to Ukraine.

Late Thursday night the Senate followed the bipartisan lead of the House and passed the debt and budget deal that had been negotiated by President Biden and Speaker McCarthy. On Wednesday the House passed the bill on a vote of 314 to 117 and the Senate then acted on a vote of 63 to 36. 

The average observer might ask: Once the Senate has passed bill, why can’t the President just sign it?

A little-known fact is that once Congress passes a bill it needs to be “engrossed,” which is the process of reviewing every word and punctuation in the legislation. Once the President signs a bill it is law, and even to change a misplaced coma requires an Act of Congress. Hence, a very careful review of every word and punctuation is mandatory and necessary before sending it to the White House. 

What does the bill do?  Perhaps most importantly, it suspends the debt ceiling until 2025, removing the need to address the debt ceiling during the 2024 election cycle.

Among the items Speaker McCarthy was able to get during negotiations were a clawback of $28B in unspent Covid funds, a reduction in money given to the IRS for new agents (a Republican priority), reform to expedite approval for energy projects, strengthened work requirements for some food-stamp and cash social-welfare programs, and caps on spending for the next two fiscal years.  However, the spending cap comes with a big asterisk – the Congress can still add more money via an Emergency Supplemental Bill.

Almost every year, there are emergencies that arise and need funding. These can range from national security issues to assistance for victims of natural disasters.  Several undecided Members of the House and Senate agreed to support the debt/budget deal after receiving assurances that the budget caps wouldn’t limit an Emergency Supplement Bill.  Items that have been specifically discussed in this context are natural disasters such as hurricanes, additional security at the border, and supplies for the war in Ukraine. 

Disclosures (show)