Democrats Accept McConnell's Short-Term Debt Ceiling Plan

by Wall Street Rebel | Michael London | 10/07/2021 8:12 AM
Democrats Accept McConnell's Short-Term Debt Ceiling Plan

Senate Majority Leader Mitch McConnell offered Democrats a compromise that would enable the government to borrow money to pay bills for another two months while maintaining its authority to do so.

 

On Wednesday, senators from both parties indicated that they would support a Senate Minority Leader Mitch McConnell (R-KY) plan to extend the debt ceiling for another two months to avert a possible economic catastrophe.

In a statement, Sen. Tammy Baldwin said accepting McConnell's offer to vote on raising the debt ceiling to a specific figure that is high enough to meet the nation's financial commitments through December would  be "a momentary  triumph."

As she explained to CNN's Jake Tapper, "we see the temporary raising of the debt limit as a win, if it is a temporary one with more work to be done."  In her remarks, Baldwin said that she had just left a closed-door meeting of the Senate Democratic Conference, where members had reviewed McConnell's offer that had been offered earlier that day.

Wednesday afternoon, Senate Majority Leader Charles Schumer (D-NY) is likely to declare his party's stance on McConnell's offer, according to a Reuters report.   

Conservative commentator Tammy Baldwin pointed out that by accepting the agreement, Democrats would avoid going through the time-consuming process of modifying the fiscal year 2022 budget resolution to create a stand-alone reconciliation package to increase the debt limit.

According to Senate rules, they would have to raise the debt limit to a higher level as a reconciliation process. They could not simply vote to suspend it until after the 2022 congressional elections.

Democrats from other parties attempted to depict the decision to accept  McConnell's offer as a victory. After the meeting, Sen. Elizabeth Warren (D-CA) said that McConnell had "caved."  "And now we're going to devote our time to child care, health care, and climate change mitigation."

Democrats have come out firmly against utilizing the budget reconciliation procedure to increase the debt ceiling, claiming that it would have taken up to two weeks of floor time and needed many floor votes.

 

                     McConnell Offers Democrats A Short-Term Fix In Debt Ceiling

 

 

 

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