Debt Ceiling Suspension Until September 30?
January 30, 2023
House Republicans are considering a short-term suspension of the debt ceiling through September 30.
Why it matters: a clean vote to suspend the debt limit to the same date as a government funding deadline to determine: 1) what to do about overall government spending and 2) 2024 appropriations bills. A short-term suspension could buy more time for House Republicans to negotiate with the White House and delay or remove brinksmanship that is catastrophic for the nation’s credit rating.
Republicans seem to be less focused on cuts to entitlements like Medicare and Social Security. Instead, they appear more focused on reducing the baseline of government discretionary spending, which increased 30% due to COVID relief, the Bipartisan Infrastructure Law, and the Inflation Reduction Act.
The big picture: By focusing on reducing overall spending, House Republicans can claim victory and focus on reducing government expenditures, the White House can celebrate a “clean” debt ceiling increase, and a deal could be mild enough to survive the Senate.
What’s next: Congress will receive updated estimates of government receipts on February 15. If receipts are low, the Debt Limit “X date” is likely to be June 14. If receipts are higher than expected the date will extend to August.
- If the House suspends the Debt Limit to the fall, it gives Republican more time to negotiate lower spending.
- An internal meeting of House Republicans last week exposed rank-and-file members to how a debt limit agreement is in their policy interest. An agreement allows Congress to focus on the appropriations process for the next two years and reduce spending.
Yes, but: “Veterans of the Obama-era debt ceiling standoff on the current one: We may be doomed” — Politico
One fun thing: Since 2016, Congress raised the debt ceiling three times when Republicans had majorities in the House and Senate.