Debt Ceiling Showdown Roils Washington.
“House Republicans are finalizing a proposal that would raise the debt ceiling for roughly one year while slashing federal spending and unwinding some of President Biden’s top priorities, including student debt cancellation, setting in motion an urgent scramble ahead of a key fiscal deadline.
The emerging plan is likely to falter in the Democratic-led Senate, and surely would receive a veto from Biden, who has called on GOP leaders to preserve the country’s ability to borrow without conditions. It isn’t even clear if House Speaker Kevin McCarthy (R-Calif.) has united his own, razor-thin majority around the approach, adding to the challenge lawmakers face as they return Monday from their recess — and race to avert a financial catastrophe that may be as little as seven weeks away.”
The Debt ceiling negotiation is a recurring nightmare of Washington’s own making that does nothing to bolster the reputation of America abroad. But until Congress changes the law to remove the requirement of a Congressional vote to increase it, the drama that plays out will keep most other business from getting done until Congress inevitably votes to raise it. The negotiations with a divided Congress and White House will get very tense to say the least and the real possibility of a default is always present.
