|
 |
 |
|
OVERNIGHT MONEY: House GOP preps for debt-limit vote
TUESDAY'S BIG STORY:
Taking it to the limit: Now that all the pomp and circumstance of a presidential inauguration have been dealt with, Congress can get right back to the business at hand: the debt limit.
The House Rules Committee has scheduled a Tuesday hearing to process the latest move from House Republican leaders announced Friday. The committee released legislative language Monday that would suspend the nation’s $16.4 trillion debt limit until May 19, after which time the limit would automatically be raised to cover whatever borrowing the Treasury Department did during that stretch. The Rules hearing sets the stage for a vote from the full House as soon as Wednesday.
But the real wrinkle to the bill is the pressure it brings on a budget. The bill also would require both chambers of Congress to pass a budget by April 15. If either side fails to do so, that side’s lawmakers will have their pay withheld either until a budget is passed, or until the 113th Congress wraps up work at the end of 2014.
That legislative tweak is a move by House Republicans to pressure Senate Democrats to produce a budget — something they have failed to do over four years. Leading Democrats have said they plan to put something forward, but it remains to be seen whether this new move by the House GOP has any chance of making headway in the Senate or with the White House. Furthermore, some conservative House Republicans could yet again buck party leaders and oppose the debt-limit boost because it does not come with any spending cuts.
One place to take that temperature tomorrow will be at the first “Conversation with Conservatives” of the 113th Congress. Several of the House’s most conservative members, including some who have butted heads with party leaders in the past, will be on hand to offer their perspective on the nation’s business.
Treasury Secretary Timothy Geithner has told Congress the nation has hit its borrowing limit, and that “extraordinary measures” are expected to only put off a default until sometime in mid-February to the beginning of March.
While the nation may be less than a month from default, markets so far are keeping an even keel. Markets closed at their highest levels since 2007, and traders will be back on the floor Tuesday following the federal holiday.
WHAT ELSE TO WATCH FOR
It’s not just the House that’ll be back to work tomorrow — the Senate will be back in session as well. Senate Democrats will be huddling for their weekly lunch and game-planning how to approach the budget question. Sen. Charles Schumer (D-N.Y.) has said any budget from Senate Democrats will include increased revenues, and could be used as a vehicle to advance tax reform — a topic the president highlighted in his inaugural address.
Limit look-see: Meanwhile, members of the House Ways and Means Committee will take a long, hard look at all this debt-limit business with a hearing of their own. The hearing is aimed at looking at how the debt limit, an anomaly in most of the First World, has been handled by the U.S. in the past. Furthermore, the hearing will examine whether the Constitution gives “options” to President Obama to get around the limit, amid chatter that the president could employ the 14th Amendment or mint a massive platinum coin to work around that pesky borrowing cap. A handful of experts from both sides of the aisle will be on hand to offer their take.
ECONOMIC INDICATORS
Existing Home Sales: The National Association of Realtors releases December figures for sales of existing homes, which are completed transactions across a broad range of housing types, including single-family homes.
WHAT YOU MIGHT HAVE MISSED
— House Republicans unveil measure to suspend the debt ceiling until May 19
— Few details on Senate Dem budget plan
Catch us on Twitter: @VickoftheHill, @peteschroeder, @elwasson and @berniebecker3
For tips and feedback email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Most Viewed RSS Feed »
