Rosalind Evans
As the looming threat of a historic national default becomes more imminent, party leaders in Washington are working feverishly this Monday to persuade Democrats and Republicans to back a legislative compromise to avert this crisis. Both sides claim successful negotiations following intense discussions.
The bill’s chances for passing have increased since Sunday, following the agreement between President Joe Biden and Republican House Speaker Kevin McCarthy. Centrist Democrats have increasingly shown their support, while Republicans remain optimistic about gaining a majority backing from their House conference for the crucial vote anticipated on Wednesday.
Both parties focus on moderates who, despite their disagreements with specific provisions, are likely to support suspending the federal borrowing limit until January 1, 2025—post the next presidential election—to avoid a default. The legislation cements non-defence expenditure, temporarily extends work requirements for specific food stamp recipients, and retrieves some Covid-19 relief funds.
The bill is a significant moment for both Biden and McCarthy, as their political futures may depend on their success in passing the bill and marketing it as a triumph for their respective parties.
Speaking from the White House, President Biden commended the agreement as vital for avoiding economic catastrophe.
Biden dismissed concerns from some Democrats, who feel he made excessive concessions during his negotiations with Republicans.
In a private call with House Democrats on Sunday, Biden’s team justified their deal with McCarthy, detailing their success in preventing specific proposals from making it into the bill, according to several sources. They claim to have thwarted Republicans from imposing stricter work requirements and defeated attempts to revoke the Inflation Reduction Act and dismantle Biden’s landmark 2021 infrastructure legislation.
Many Democrats indicated they would support the plan, viewing it as the only feasible alternative to avoid default, lawmakers informed CNN.
Members of two influential centrist groups—the New Democrat Coalition and Problem Solvers Caucus—are anticipated to back the plan widely, potentially offsetting opposition from right-wing members displeased with McCarthy’s negotiations.
Several hard-line House Freedom Caucus members have already strongly disapproved of the plan, promising to oppose its passage.
McCarthy has assured House Republicans that the Democrats gained no advantage from the negotiations and touted government spending limits and new work requirements for food stamps as critical victories for the GOP.
However, like Biden, McCarthy admitted that both sides had to compromise for the agreement.
McCarthy faces his first major test on Tuesday in the House Rules Committee, which must approve a rule to allow the bill to be passed by a majority of the House. McCarthy conceded to appoint three conservative hardliners to the committee to win the speakership, a significant concession.
If all three appointed hardliners voted against the rule in committee, it would result in the bill’s failure—unless any Democrats vote to move the government forward.
Despite concerns, McCarthy’s allies downplayed the conservative resistance.
The bill still has to pass through the Senate after the House, where any senator could delay progress. On Sunday, some influential Senate Republicans expressed concerns about the agreement’s defence spending.
However, with the backing of Senate GOP Leader Mitch McConnell and the anticipated support of Senate Majority Leader Chuck Schumer, the 60 votes required to override a filibuster attempt will likely be secured. The final votes in the Senate might be postponed.
President Biden and House Speaker McCarthy are making substantial efforts to drive bipartisan support for the debt ceiling agreement in a complex political landscape. Despite potential hurdles in the House and Senate, the bill is gaining traction as a viable solution to prevent an unprecedented national default. The coming week will prove critical in determining the success of these efforts, as both leaders face crucial votes and opposition from within their ranks.
