In addition to all of the infighting over the $1.2 trillion bipartisan infrastructure bill and their massive $3.5 trillion budget bill, the Democrats have another huge fiscal problem to deal with in the looming debt limit.
Republicans have no interest in assisting with passing the budget bill or easing the path of the infrastructure bill in the House and zero motivation for doing anything about raising the debt ceiling this time around.
The Democrats now plan to fund the federal government through the end of the year and raise the debt limit. The deadlines they have placed on themselves regarding the spending bills present other problems. The immediate deadline issue comes on October 1, when the current spending authority expires. The Treasury has stated that it will not meet debt obligations immediately after that, threatening default on debt servicing.
Along with negotiated aid payments for the parts of the country hammered by this summer’s hurricanes and money for Afghan refugee resettlement following Joe Biden’s disastrous withdrawal of U.S. military forces from Afghanistan, Democrats have added in a provision for raising the national debt limit to the funding bill.
Every House and Senate Republican has now said that they will not vote for any debt ceiling increase if it is attached to a funding or spending bill. It means that Democrats are now faced with moving the debt limit increase forward by themselves.
Democrats responded with outrage, arguing that they acted with Republicans to raise debt limits and fund spending during the Trump administration. As usually happens, the parties use debt limit increases as opportunities to point the finger over the national debt, even though both parties eventually work together to continue the upward federal spending spiral.
This time around, the Republicans have a strong argument in favor of sitting on the sidelines. After all, the Democrats created their enormous $3.5 trillion spending spree budget bill without considering even a single Republican opinion for a minute.
Even though it is a given that the debt limit will be increased one way or the other, it should be entertaining to watch the Democrats have to recalculate and scale back on their insane spending plans to make it happen.