Democrats try to avoid financial disasters: NPR

Speaker of the House Nancy Pelosi, D-Calif, at the US Capitol on Wednesday. The House of Representatives has passed a bill to maintain government funding and suspend debt caps, but Republicans are expected to block it in the Senate.

J. Scott Applewhite / AP

Hide captions

Switch captions

J. Scott Applewhite / AP

Speaker of the House Nancy Pelosi, D-Calif, at the US Capitol on Wednesday. The House of Representatives has passed a bill to maintain government funding and suspend debt caps, but Republicans are expected to block it in the Senate.

J. Scott Applewhite / AP

Democrats in Washington are working against a rapidly imminent deadline to end the conflict with Republicans, which could force government closures and panic on the country’s credit rating.

Leaders have chosen to link a federal borrowing limit extension to the bill to extend regular government funding that will run out at the end of September. Republicans have argued for months that they don’t support the plan. This means that closures and defaults may be imminent.

Conflicts also arise as Democrats struggle to manage serious rifts within their party over a $ 3.5 trillion spending plan that includes most of President Joe Biden’s agenda.

Biden called nearly 20 Democrats to meet Wednesday at the White House, as the fate of all three measures has been questioned... Prior to his White House meeting, Senate leader Chuck Schumer, D-NY. Gave a speech on the Senate floor blaming Republicans for the impending financial crisis.

“All American families will suffer from the Republican desire to play political games and send our country to default,” Schumer said. “Sufficient trust and credibility in the United States is not a game. It is the foundation that our economy supports.”

Congress faces another shutdown threat

House Democrats resolved on Tuesday night to extend government funding until December 3, suspend debt restrictions until December 2022, and provide financial assistance to natural disasters and Afghanistan refugees. Senate leader Mitch McConnell, R-Ky. Said the Republicans wouldn’t support it.

McConnell says Republicans can’t support raising borrowing limits while Democrats are pushing for partisan spending.

“Americans don’t want that,” McConnell said on the Senate floor. “And the Senate Republicans wouldn’t support it.”

Democrats, who manage 50 seats in the Senate, plan to use a budgeting tool called reconciliation to pass spending plans without Republican votes. The settlement allows you to pass certain tax and expense related bills without the 60 votes required by most laws.

McConnell wants Democrats to use the same tools to deal with debt restrictions.

However, the Democratic Party argues that the debt limit set by Congress on the amount that the federal government can borrow should not be a partisan issue. They say the Democratic Party has voted several times under former President Donald Trump to raise the borrowing limit, and the current plan to suspend the borrowing limit stems from the government’s spending on bipartisan COVID bailouts. He says it will make it possible to repay the debt.

Alabama Senator Richard Shelby, a top Republican on the Senate Expenditure Commission, said Democrats are prematurely panicking about debt and should focus on preventing government closures next week. ..

“The Treasury has a lot of options and should always be alerting, but I think we have time,” he told reporters in the Capitol. “I would like to pass an ongoing resolution to move myself forward and fund the government.”

Democrats are facing spending problems

Republicans have signaled for months that they are willing to risk conflicts over debt and spending as a way to oppose Democrats’ broader spending plans.

McConnell has suggested that he will not support raising debt limits as long as the Democratic Party has been planning to use a budgeting tool called a settlement to avoid the Republican blockade of Biden’s spending plan since at least July. .. He repeatedly insisted that Democrats use the settlement to raise their debt limits, but Democrats chose to ignore his demands.

Republicans are right that the Democrats can still amend the rules of the settlement to include raising debt limits, but such a move poses a serious risk to the Democrats.

As a matter of fact, adding debt limits to spending bills can take a considerable amount of time. Democrats claim they can’t wait to suspend restrictions without risking the potential for serious economic harm.

Even if they could speed things up, the Democrats currently don’t have a vote to pass the settlement. Adding debt limits to the package is unlikely to guarantee passage, and the Democratic Party is solely responsible for possible defaults.

Moderate members such as Senator Joe Manchin (Democratic Party) and Kyrsten Sinema (Arizona) oppose top-line spending targets and some of the basic policies backed by progressives.

Most Democrats say they are working in the hope that these disagreements will be resolved, even though there is little evidence that neither faction of the party is willing to forgive. Diva Senator Tim Kaine said the Democratic Party is proud of the faction’s COVID bailout bill approved earlier this year and needs to build on its success.

“We did a pretty solid first stretch of the Biden administration, where Republican-less Democrats brought great benefits to the American people,” Kane said. “The next step may be to make big profits with few Republican votes, but I think we’ll get there.”

Democrats try to avoid financial disasters: NPR

Source link Democrats try to avoid financial disasters: NPR

Back to top button