Tag: savior

  • Senate still not a savior in debt crisis

    Senate still not a savior in debt crisis

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    Tillis and his 48 Senate GOP colleagues are nonetheless praying that Speaker Kevin McCarthy can muscle through his opening pitch to give their party a modicum of leverage over the coming weeks. A McCarthy failure would make it much harder for 10 or more Republican senators to extract any concessions at all from the president as a condition for raising the borrowing limit.

    Yet basically every Senate Democrat, save West Virginia centrist Joe Manchin, says there’s no negotiation to be had no matter what transpires in the lower chamber this week. Senate Majority Leader Chuck Schumer declared the House’s proposal the “DOA Act” for its grim prospects of becoming law and reiterated that he would only accept a “clean” debt ceiling hike.

    The yawning gap between the parties in the Senate highlights the high degree of uncertainty over just how Congress and the White House are going to get out of this particular jam. It’s undoubtedly the most consequential topic of 2023 and perhaps the entire two-year session, with massive economic and political stakes for both parties heading into a presidential election year.

    Sen. Chris Murphy (D-Conn.) pointedly argued that the House’s GOP’s eleventh-hour horse-trading alone invalidates their negotiating position: “This very public display of dysfunction is a clear indication of how disastrous a negotiation would be. I mean, these guys can’t negotiate amongst themselves.”

    Murphy advised House Republicans to pick a fiscal austerity fight, if they want one, during talks over funding the government in the fall: “They’ll lose that fight with the American public, but at least it’ll do a lot less damage,” he said. “My sense is a lot of Senate Republicans think the House strategy is super dumb and politically toxic.”

    A growing number of House Democrats want Biden and McCarthy to sit down and negotiate, but that will likely depend on what can pass the House this week. On the other side of the aisle, moderate Sen. Lisa Murkowski (R-Alaska) advised Biden to “take a good look at” what the speaker can pass, then start haggling.

    Whenever that phase starts — if it does at all — all eyes will be on the Senate and its track record of getting Washington out of jams with bipartisan solutions. Yet right now there’s very little cooking in the chamber’s dealmaking kitchen.

    “We should be able to sit down and talk like grown-ups,” said Manchin, who has met with McCarthy and faces a difficult reelection campaign. “Everybody should be involved.”

    The current standoff is inextricably linked to the precedent its resolution might set for the next debt limit fight. Republicans think they can’t fold on this debt crisis without inciting a rebellion by their base, while Democrats believe opening the door to negotiation creates an endless loop of face-offs with the GOP.

    Senate GOP leaders bent twice in 2021 to avoid a debt limit breach, and Democrats envision that ultimately that will happen once again. But the Republican-controlled House’s actions thus far have made even that result hard to imagine, as McCarthy digs in on a matter that could determine the future of his speakership.

    This explains why Senate Republican leaders are continuing to squash any possibility that Minority Leader Mitch McConnell might be ready to step in and cut a deal amid the staring contest between McCarthy and Biden, who have not met on the topic in nearly three months.

    Sen. Shelley Moore Capito (R-W.Va.) said her party is “gonna continue to support what the House has done,” adding that Schumer might step in after the House votes “but I think it’s still going to be McCarthy and Biden” agreeing on a debt solution.

    While Republicans worry about allowing another clean debt ceiling increase and sparking another internal fight, Democrats fear a damaging redux of 2011 — when the tea party-influenced House GOP played hardball with then-President Barack Obama and Vice President Biden. The two parties eventually cut a deal to extend the debt ceiling which culminated in significant spending caps.

    In retrospect, Democrats view that episode as a mistake that cannot be repeated. Rather than entertaining dealmaking with McCarthy, centrist Sen. Jon Tester (D-Mont.) said simply: “The solution is to not default on the debt.” Sen. Ben Cardin (D-Md.) was just as succinct: “I don’t think there’ll be negotiations on a budget.”

    “It’s difficult to understand what the House is going to do. They can’t pass a signable bill unless they bring Democrats into the process. So I think on our side, we’ll try to work with Republicans to see what we can do,” Cardin said, adding that McConnell “understands the seriousness of this.”

    McConnell, however, once again aligned with McCarthy this week and suggested Biden join the speaker at “the grown-ups table.” The Senate GOP leader has taken great pains to show little daylight with the California Republican after a number of splits last year raised questions about how the two men would govern their party together.

    So despite Democrats’ hopes, there’s little sign McConnell or his lieutenants are ready to lift a finger at this point.

    The House bill “forces the administration to come to the table,” Senate Minority Whip John Thune (R-S.D.) said. “The pressure really ought to be on the White House.”

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    #Senate #savior #debt #crisis
    ( With inputs from : www.politico.com )

  • ‘Not a gang discussion’: Debt crisis still seeking a savior

    ‘Not a gang discussion’: Debt crisis still seeking a savior

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    congress returns 10003

    “If they can’t get anywhere, there are a number of choices, right?” Sen. John Hickenlooper (D-Colo.) said of Biden and McCarthy. But he’s not ready to put on his bipartisan gang gear yet: “I’m a little bit more fiscally conservative than some Democrats. But this isn’t where you negotiate that.”

    If McCarthy and Biden’s talks flounder, that would seem to leave centrists in a strong position. Senate Minority Leader Mitch McConnell (R-Ky.) has sidelined himself and indicated that McCarthy’s in the lead for their party, however, which means his moderates are also taking themselves out of the game to avoid undercutting the speaker. In short, don’t expect one of the Senate’s often-active bipartisan groups to swoop in just yet.

    Still, Sen. Joe Manchin (D-W.Va.) has met with McCarthy and a handful of senators are informally chatting about possible debt-limit solutions. Other centrists are moving more formally: A group of House moderates met for the first time last week to discuss escape hatches if Congress gets too close to busting through the debt limit, expected to potentially hit in June.

    Their discussions, according to three people familiar with them, included the long-shot option known as a discharge petition — which requires a majority of the House to force a debt-limit vote against the speaker’s wishes.

    “The goal is to not have that,” Rep. David Valadao (R-Calif.) said of any potential fallback plans, before adding: “We’re in a dire situation.”

    It will only grow more dire as the weather heats up, and with it the risk of default. And don’t put it past Congress to kick the can a little further, possibly tying the debt deadline to the expiration of government funding at the end of September.

    But when it comes time for a deal, plenty of players are waiting in the wings to assist or supplant the president and speaker.

    The Senate Gang

    During the last Congress, a roving group of Senate centrists cut a series of seemingly improbable deals on same-sex marriage, infrastructure and gun safety. Right now, there’s no such movement on the debt ceiling.

    But that may well change. And some senators are open to establishing a group to wrestle weighty fiscal issues — once the debt ceiling is raised.

    “I’d be more than happy to do that, truthfully. That’s what it’s going to take. Take the debt limit stuff off the table, because it’s playing with fire,” said Sen. Jon Tester (D-Mont.). “I am more than fine with deficit reduction. It has to be separate from the debt ceiling.”

    Though there’s a real possibility that’s where Congress ultimately ends up, few want to admit it now. Sen. Mitt Romney (R-Utah), a frequent member of the chamber’s bipartisan policymaking gangs, said “the Senate is not really talking about getting involved at this point.”

    “This is not a gang discussion,” said Michigan Sen. Debbie Stabenow, a member of her chamber’s Democratic leadership. “Not on the question of whether or not we’re going to crash the economy.”

    The big reason there’s no gang right now: Most Democrats argue that a debt ceiling increase shouldn’t be subject to negotiations, period. And Republicans believe that their position will erode if centrists start breaking ranks with the current GOP position of leaving things to McCarthy.

    Rogue House dealmakers

    House moderates have eyed a possible major role in the volatile debt talks ever since the GOP’s flimsy four-vote majority was sealed in November.

    Now that there’s an empowered bloc of deal-making moderates in both parties, the bipartisan Problem Solvers Caucus is edging its way into the talks. While the full group has yet to meet, a smaller band of its leaders gathered last week to begin preliminary discussions.

    People familiar with the meeting made clear that the Problem Solvers have no intention of getting ahead of their respective party leaders, but pointed to early conversations about possible spending caps or broader fiscal reform that could prove valuable when negotiations kick off in earnest.

    “We should just do a clean debt limit. That may not be realistic given where Republicans are,” said Rep. Scott Peters (D-Calif.), who drafted a bill in recent years with now-Budget Chair Jodey Arrington (R-Texas) that proposed several ideas for Congress to avert semi-annual debt brinkmanship.

    And if the McCarthy-Biden talks flame out, Peters said this bipartisan House cohort wants to be prepared: “There’s a group of people here who want to be prepared.”

    Some Problem Solvers expect the group will ultimately launch a dedicated internal effort to tackle the debt, as they previously have with other policy ideas, such as infrastructure. One big topic likely to be discussed — how to force a debt ceiling bill to the floor that doesn’t have uniform GOP support.

    The idea of a discharge petition is getting floated, though some Hill aides and budget experts see that route as too slow and unwieldy to accommodate a rapidly-changing default deadline. Some members are also discussing procedural gambits that would take less time to bring a bill to the floor, such as a House motion for a “previous question,” which has far more flexible rules.

    Mitch McConnell

    The Senate GOP leader successfully negotiated a debt ceiling detente with then-Vice President Biden more than a decade ago, yielding a decade of spending caps that squeezed both defense and domestic spending. McConnell also struck a 2021 deal with Senate Majority Leader Chuck Schumer that allowed Democrats to advance a $2.5 trillion debt ceiling hike with a simple majority.

    But his work on that debt deal, as well as December’s government funding agreement, spent big political capital and earned him some criticism. So despite McConnell’s vaunted pedigree of negotiating with Biden, he is currently declining to step into negotiations and leaving things to McCarthy — who criticized several bills that McConnell supported last Congress.

    “There’s no way that the House is going to accept something that 60 senators vote on on a bipartisan basis,” said Sen. John Cornyn (R-Texas). “That’s [McConnell’s] position.”

    Some believe that, as Republicans float a variety of fiscal concessions with no clear plan or unifying potential — including another set of spending caps and debt-to-GDP spending targets — that the GOP leader may once again have to step in. McConnell and Biden have maintained their uniquely productive relationship through this year, appearing together at an infrastructure event last month in Kentucky.

    “I cannot imagine there’d be a major deal here and Mitch McConnell isn’t going to be part of it,” said Rep. Tom Cole (R-Okla.). “I suspect he’ll be involved in negotiations when he thinks it’s appropriate.”

    But not yet. Even talking about McConnell’s involvement “would be damaging to” McCarthy during talks with the president, Sen. Kevin Cramer (R-N.D.) said: “I think we’re better off sticking with him as the lead sled dog.”

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    #gang #discussion #Debt #crisis #seeking #savior
    ( With inputs from : www.politico.com )