Congress considers plan to raise the debt limit by $2 trillion

Republicans may help Democrats lift the debt ceiling after all — in their own way.

GOP congressional leaders have said for months that they will not vote with Democrats to raise the debt limit and snuff out the threat of a first-ever U.S. default. Top lawmakers may have found a new way for Democrats to hike the borrowing cap before Dec. 15, the estimated date when the Treasury will no longer be able to pay its bills.

The process would be complicated and carry risks. If the House and Senate can pull it off, Washington would quash the risk of a default that could wreak havoc on the global economy and stock markets.

The strategy would tie the effort to raise the debt limit to a bill designed to prevent automatic Medicare spending cuts set to take place at the end of the year. Lawmakers would pass a provision in the health-care bill that would allow the Senate to increase the debt ceiling one time with a simple majority vote.

Under the plan, at least 10 Republicans would have to vote to allow Democrats to hike the borrowing limit on their own. Then Democrats, who hold a majority in the 50-50 Senate through Vice President Kamala Harris’ tiebreaking vote, could raise the debt ceiling in a separate vote without GOP support.

The House Rules Committee is set to consider a version of the Medicare bill that includes the debt-limit language on Tuesday. The full House plans to pass it as soon as Tuesday night.

If both chambers of Congress pass the legislation and President Joe Biden signs it, Democrats can then hold separate votes to hike the debt limit. Democrats’ plan would raise the borrowing ceiling by about $2 trillion, enough to carry the U.S. through the 2022 midterms, a source told CNBC.

Senate Majority Leader Chuck Schumer expressed confidence Tuesday that Congress would stave off a default — without specifying how it would do so.

“Over the past few days we have made good progress on this issue and I’m optimistic that we will be able to prevent the awful prospect of the U.S. defaulting on its sovereign debt for the first time ever,” he said on the Senate floor.

The proposal would offer some relief to both parties. Republicans would not have to vote for a debt ceiling increase. Democrats would not have to include a borrowing limit hike as part of the budget reconciliation process they are using to try to pass a $1.75 trillion social spending and climate package.

As part of the strategy, Democrats would have to set a specific dollar figure for the debt ceiling, which Republicans could try to use as a political weapon.

Congressional leaders considered adding the debt-ceiling language to the National Defense Authorization Act, an annual bill that sets defense spending levels, instead of the Medicare legislation. They decided against it, as the NDAA vote would have been more politically tricky both for Senate Republicans who oppose the debt-limit maneuver and progressive House Democrats who are against defense spending hikes.

Schumer and Senate Minority Leader Mitch McConnell have held talks about how they could prevent a default. But it is unclear whether enough GOP senators would sign off on the developing plan for it to succeed.

McConnell on Tuesday told reporters he believes the plan will have enough Republican support to pass. The Senate could vote on the Medicare and debt ceiling bill Thursday, he said.

“I’m confident that this particular procedure, coupled with the avoidance of Medicare cuts, will achieve enough Republican support to clear the 60-vote threshold,” he said.

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[BluePhoenix]

but CNN told me he wasn't going to raise taxes on the middle and lower classes 😭

[gillygil]

The United States Dollar has lost 40% of it's worth since 2020.

[tj]

Ya. Let’s waste more of our children’s and grandchildren’s money. Smart. Let’s Go Democrats, Brandon has nothing on you.

[ralphholiman]

Why not go ahead and raise it by a gazillion dollars and let’s get this party started?

[johjoh]

its okay guys, i dont need to retire. ill just work six days a week till im dead while rent goes up $300 a year. lets just make a nation of desperate poor people. itll be fine nothing bad could happen.

[keezjordan]

Government overspending asking the working poor to pay for their unstoppable greed!

[hauvu]

We were living just fine under Trump, all these debt and still nothing better only worsen every day under this administration. Seriously what is good that is happen to our lives right now with all these damn debt?

[garlandgranger]

I have no doubt that the national debt will exceed 40 trillion by the time Biden leaves office unless the Republicans stop his stupid spending bills. My grandchildren will suffer because of Biden and that infuriates me to no end.

[pauljames]

Raising the debt limit = raising taxes on the middle and lower class. Thanks Joe Biden

[jmabs]

The downvote button has never been smashed so fast with anything associated with Brandon, so bad they had to remove it!
# LET'S GO BRANDON

[JustAName-itqp]

Bank: why are you requesting this much credit with not enough income?

Me: Well I identify as the US Congress

[arancar]

Hey let's just throw more money at it. Seems to work for venezuela

[dw]

When they raised it last month, we were told it won't cost a penny.

[cobracommander...]

That's it. We need to stop payment of taxes until they can get things fixed. It's like we keep paying someone to never show up to work.

[brandlynnyoung]

If you come home and your house is filled with sewage because your septic tank backed up, do you fix the problem or do you just knock out the ceiling and let the sewage continue to back up?

We dont need a higher debt ceiling.
We need to clean the crap out that is there now.

[mountbara]

A better idea would be to pass a balanced budget amendment and pay off the debt.

[TB-rrqd]

At this point why do we even have a debt limit?!?

[Bianca]

Of course they are 😂😂😂.
This country was going so far with Trump and now we're just going so far into debt which means more war.

[rymn]

Scared to think what will happen when Brandon raises our taxes here soon enough

[stevensproull]

I'm buying "Monopoly Money"...It will soon be safer than US Currency...