The White House said it would continue to push lawmakers to raise the debt ceiling even as Democrats appeared poised to accept a short-term deal proposed by Senate Minority Leader Mitch McConnell for a three-month extension.
“There is still an opportunity for Republicans to join us and be adults in the room and ensure that people have confidence in the economic security and their own retirement savings,” press secretary Jen Psaki told reporters on Wednesday. “Why kick the can down the road for a couple of more weeks? Why create an additional layer of uncertainty? Why not just get it done now? That’s what we’re continuing to press for, and that’s our first choice.”
BIDEN TO MEET CEOS AHEAD OF CAPITOL HILL SHOWDOWN OVER DEBT LIMIT HIKE
With less than two weeks until an Oct. 18 deadline when the Treasury Department warned of a possible default, McConnell on Wednesday offered Democrats a solution to avert the debt crisis by pushing the debt limit to December. Doing so would provide Democrats more time to hike the ceiling using a budgetary tool to pass a new limit without any Republican votes. McConnell and Senate Republicans have blocked Democrats’ efforts to raise the ceiling, stating they could proceed independently.
McConnell said in a statement Republicans support advancing the reconciliation process “for standalone debt limit legislation” or permitting Democrats “to use normal procedures” to pass a fixed extension lasting into December.
Psaki pushed back on McConnell’s proposal.
“There’s been no formal offer made,” she said. “A press release is not a formal offer.”
Asked if Biden planned to speak to the Kentucky Republican, Psaki said he would “at some point if it’s constructive.”
Democrats had hoped to pass legislation to extend the debt ceiling until December 2022, but Republicans said they would not provide the 10 votes needed to avert a filibuster.
The White House blames Republicans and McConnell for stalling legislation that would lift the borrowing limit without using reconciliation.
“This is about whether you’re going to be a leader and take steps that are not based on political calculations and more based on what’s in the interest of the United States and the full faith and credit of the United States,” Psaki said.
Under the circumstances, Democrats appear set to vote for McConnell’s proposal, despite reservations.
Treasury Secretary Janet Yellen has warned that Congress must raise the borrowing limit by Oct. 18 to avoid the nation defaulting on its loans, ratcheting up concerns about higher interest rates for auto and home loans and credit cards. Defense Secretary Lloyd Austin warned that a debt ceiling lapse could mean no paychecks for troops, and the White House said Medicare and Social Security payments might also be at risk.
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Senate Democrats are leading the discussions, with some viewing McConnell’s offer as a victory enabling them to push forward on their sweeping social spending plans, which they hope to pass by the end of the month.
