The Senate on Thursday approved a deal to increase the debt ceiling and keep the country solvent into December, moving to stave off a default expected to occur in a matter of days.
Senators voted 50-48 along party lines on the short-term increase in the nation’s borrowing limit. GOP Sens. Richard BurrRichard Mauze BurrEnd Citizens United, Let America Vote endorse Mandela Barnes, Cheri Beasley ahead of 2022 Veteran, author launches US Senate campaign in North Carolina Anti-Trump Republicans on the line in 2022 too MORE (N.C.) and Marsha BlackburnMarsha BlackburnHillicon Valley — Presented by American Edge Project — Facebook experiences widespread outage Four big takeaways from a tough hearing for Facebook Facebook comes under stark criticism at whistleblower hearing MORE (Tenn.) didn’t vote. The bill still needs to pass the House, which is out of town, before being sent to President BidenJoe BidenBiden and Xi Jinping to hold virtual summit by end of this year Facebook whistleblower to meet with Jan. 6 committee: report On The Money — Presented by NRHC — Senate nears debt ceiling ceasefire MORE’s desk.
Though the final vote, which required a simple majority, was along party lines, 11 Republican senators voted with Democrats to get the bill over a procedural hurdle that required 60 votes.
The Senate’s action comes a day after Senate GOP Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGraham opposes short-term debt hike, warns against being ‘held hostage’ to filibuster Schumer-McConnell debt hike talks spill into Thursday Overnight Defense & National Security — Pentagon chiefs to Congress: Don’t default MORE (Ky.) said that Republicans would let Democrats pass a short-term debt hike and just hours after Majority Leader Charles SchumerChuck SchumerThe Supreme Court isn’t political — and reversing Roe v. Wade wouldn’t make it so Democrats look to make debt ceiling a winning issue Senate Republicans’ campaign arm raises over million in third quarter MORE (D-N.Y.) announced they had clinched a deal.
It marked a quick end to a months-long standoff between Schumer and McConnell that had moved the country closer to a historic default. Congress has until Oct. 18 to raise the nation’s borrowing limit, or risk plummeting over the fiscal cliff with significant consequences for the world’s economy.
Under the agreement passed by the Senate, the debt ceiling will increase by $480 billion. The Treasury Department, according to Senate aides, thinks that will set up the next deadline for Dec. 3, the same day government funding is set to expire.
That effectively punts the debt fight until later in the year. But there was growing concern among senators in both parties that the stalemate didn’t have a clear offramp.
Sen. Joe ManchinJoe ManchinSanders declined to sign statement condemning protests against Sinema: report Graham opposes short-term debt hike, warns against being ‘held hostage’ to filibuster Schumer-McConnell debt hike talks spill into Thursday MORE (D-W.Va.) urged McConnell and Schumer, who at that point had not started speaking, to start negotiating with each other to find an offramp.
“I truly implore both leaders … to engage, start working, work this out,” Manchin said.
“We have a responsibility to be the adults … we should not have these artificial crisis,” he added. “Please lead, lead, work together.
Sen. Lisa MurkowskiLisa Ann MurkowskiOvernight Defense & National Security — Pentagon chiefs to Congress: Don’t default Senate poised to stave off debt crisis McConnell offers Democrats deal to solve debt impasse MORE (R-Alaska) had also signaled that she was worried about how close the country was getting to its debt “x” date, or when the country would not be able to meet its financial obligations. Though the U.S. hit the debt ceiling on Aug. 1, the Treasury Department has been using so-called extraordinary measures to keep the government solvent since then.
“I just want to make sure … that we are doing everything that we can to not send us into a situation of default, and I don’t even want to get close,” she said.
McConnell and GOP senators have pushed for Democrats to pass a long-term debt hike on their own through reconciliation, a budget process that lets them bypass the 60-vote legislative filibuster. They twice blocked Democrats from passing a debt suspension into 2022, once when it was tucked into a short-term government funding bill and by preventing Schumer from bypassing the filibuster a second time.
That led several GOP senators to fume over the decision to offer a short-term extension, arguing that McConnell caved. Because conservatives insisted on a 60-vote cloture vote, GOP leadership spent hours trying to wrangle together the votes. In the end, 11 GOP senators voted to advance the debt deal.
“So Senator McConnell has been saying for two months now that if you’re going to spend the money through reconciliation, you need to raise the debt limit through reconciliation. And there’s been a change of heart there at the last minute,” said Sen. Lindsey GrahamLindsey Olin GrahamGraham opposes short-term debt hike, warns against being ‘held hostage’ to filibuster Schumer-McConnell debt hike talks spill into Thursday The Hill’s 12:30 Report: Dems prepare for failed debt ceiling vote MORE (R-S.C.).
Sen. Ted CruzRafael (Ted) Edward CruzKyrie Irving becomes NBA’s anti-vaccine face The Hill’s Morning Report – Presented by Alibaba – Democrats still at odds over Biden agenda Echo chamber update: What you missed if you live in a bubble MORE (R-Texas) added that “Chuck SchumerChuck SchumerThe Supreme Court isn’t political — and reversing Roe v. Wade wouldn’t make it so Democrats look to make debt ceiling a winning issue Senate Republicans’ campaign arm raises over million in third quarter MORE won this game of chicken.”
“As two trucks drove towards each other on a country road, one or the other was going to turn or you were going to have a lot of dead chickens. I wish Republicans hadn’t blinked,” he said.
In many ways the vote sets up a repeat of the current fight for early December.
Republicans are vowing that once the December deadline hits, Democrats will still have to use reconciliation unless their sweeping social spending bill falls apart.
“I think in this case, what we did is we took the Democrats’ main argument. An argument table which is which they didn’t have enough time so you know this buys them some time,” said Sen. John ThuneJohn Randolph ThuneMcConnell offers Democrats deal to solve debt impasse US on track to miss debt payments as soon as Oct. 19: analysis Democrats insist they won’t back down on debt ceiling MORE (S.D.), the No. 2 Senate Republican.
But Schumer and many Democratic senators in his caucus have vowed for months that they will not use reconciliation.
“Using reconciliation is a horrible precedent to set because it then will only be done in reconciliation in the future, which will make it even harder to raise the debt ceiling so I’m not going to use reconciliation because of the precedent it sets,” said Sen. Chris MurphyChristopher (Chris) Scott MurphyDemocrats delay debt ceiling vote to huddle on McConnell offer Senate Democrats float filibuster carveout for debt ceiling Congress comes to the aid of Libyan people, passing bill ordering probe into war crimes and torture MORE (D-Conn.).