… and the Democratic response
How will Democrats respond? There is little chance that Democrats will let the government shut down or default on its debt, which could be devastating to the economy. One possibility is that Democrats and Republicans will together vote to keep the government open before the Sept. 30 deadline — and Democrats will then pass a debt-ceiling increase using a Senate technique that lets them bypass the filibuster and pass a bill with a straight majority. (The two parties each control 50 Senate seats, and Vice President Kamala Harris can break a tie.)
“We go through these gyrations every time,” Carl Hulse, The Times’s chief Washington correspondent, told us. “It usually comes right at the end, and it’s usually pretty messy.”
The party-line approach would have drawbacks for Democrats, but they may not have a choice. The legislative technique they would need to use, known as reconciliation, is time-consuming, making it harder for the party to pass Biden’s agenda. (Biden and congressional Democrats met yesterday, to see if they could overcome their internal divisions about that agenda.)
If it takes Democrats weeks to raise the debt ceiling and they approach the October deadline, even that could create economic problems. Debt ceiling brinkmanship in 2011 sent stocks tumbling, slowed economic growth and prompted analysts to downgrade the country’s credit rating for the first time.
“There is a big difference between avoiding default by months or minutes,” Janet Yellen, Biden’s Treasury secretary, wrote recently in The Wall Street Journal. “Neither delay nor default is tolerable.”
The potential silver lining for Democrats would be if Republican opposition to raising the debt ceiling unified congressional Democrats and helped them pass Biden’s bill to fight climate change, reduce poverty, expand education and health care, and more. It’s conceivable that Democratic leaders could incorporate the debt-ceiling increase into that larger bill.