That proposal is expected to stall in the Senate, where Republicans are unanimous in their opposition to any bill that seeks to raise or suspend the debt ceiling.
Democrats are on tight economic timelines. Some are self-imposed, such as Pelosi’s promise to hold a vote on a $1 trillion infrastructure bill on or before Sept. 27. The Senate has already passed the measure.
But there are other, standing deadlines. While Congress must pass a new budget by the end of September to avoid a shutdown, lawmakers must also figure out a way to increase or suspend the debt ceiling by a to be determined “drop-dead” date.
Treasury officials estimate that lawmakers have until some point in October before the U.S. would default on its debt for the first time.
Despite the time crunch, Schumer has promised to take up the House-passed debt ceiling and government funding bill nonetheless and force the GOP to publicly vote against a bill that would keep the government open and allow the Treasury Department to continue to pay for legislation Congress has already authorized.
Raising or suspending the debt ceiling, or borrowing limit, does not authorize new federal spending, but allows the Treasury to pay for legislation that lawmakers have already passed. An increase would allow the department to pay off bills associated with the trillions in Covid relief enacted under former President Donald Trump and Biden.
Many suspect that Pelosi will be forced to pass a new resolution without the debt ceiling to keep the government open. Senate Minority Leader Mitch McConnell, R-Ky., has said on multiple occasions he would support such a “clean” bill to avoid a shutdown.
Separately, Pelosi and Schumer declared Thursday morning that they had reached an agreement on the “framework” for taxes that would be needed to fund Democrats’ $3.5 trillion package to revolutionize the U.S. public safety net.
“The White House, the House and the Senate have reached agreement on a framework that will pay for any final negotiated agreement,” Schumer said. “So, the revenue side of this, we have an agreement on. It’s a framework. An agreement on the framework.”
Moderate and progressive Democrats have clashed over the size and scope of the package. Neither Pelosi nor Schumer clarified whether the negotiators had made decisions whittling down their options for financing the bill, or were simply in agreement over which of many options they are collectively willing to consider.
Source Article from https://www.cnbc.com/2021/09/23/white-house-prepares-for-potential-government-shutdown.html
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