Senate talks on shutdown, debt stalled

Senate talks on shutdown, debt stalled
© Greg Nash

Senate Democrats are seeking to put more pressure on Republicans after a weekend of sporadic negotiations left leaders stalemated in talks to reopen the government and raise the debt limit.

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Democrats have decided to ratchet up pressure on Senate Republican Leader Mitch McConnellAddison (Mitch) Mitchell McConnellSenate passes 6B defense bill Poll: Kim Jong Un has higher approval among Republicans than Pelosi The Hill's Morning Report — Sponsored by PhRMA — Outcry raises pressure on GOP for immigration fix MORE (Ky.) instead of accepting a deal that locks in automatic spending cuts known as sequestration and makes reforms to ObamaCare.

Democratic leaders have instead urged Republicans to support a clean bill to raise the debt limit and warned the stock market could plunge on Monday or Tuesday.

Senate Majority Leader Harry ReidHarry Mason ReidAmendments fuel resentments within Senate GOP Donald Trump is delivering on his promises and voters are noticing Danny Tarkanian wins Nevada GOP congressional primary MORE (D-Nev.) and McConnell did little direct negotiating on Sunday. The two leaders spoke by phone for about five or six minutes, according to a source familiar with the call.

Reid characterized the conversation as substantive and said he was optimistic about the chances for a deal.

“I have had a productive conversation with [the] Republican leader this afternoon. Our discussions were substantive and we’ll continue those discussions,” he said on the Senate floor.

“I’m optimistic about the prospects for a positive conclusion to the issues before this country today,” he added.

But Senate aides said they did not expect any deal to be announced Sunday evening.

“I’m not expecting anything the rest of the day,” said a GOP aide.

Senate Democrats took to the floor Sunday afternoon to warn of the economic consequences if Republicans do not agree to reopen the government and raise the debt limit immediately.

Senate Democratic Whip Dick DurbinRichard (Dick) Joseph DurbinLive coverage: FBI chief, Justice IG testify on critical report Hugh Hewitt to Trump: 'It is 100 percent wrong to separate border-crossing families' Opioid treatment plans must include a trauma-informed approach MORE (Ill.) said, “for the United States to default on its national debt for the first time in history would be catastrophic.” 

“Bankers across this country, Macy’s, business leaders, all have said 'don’t be playing with this fire,' ” said Sen. Jon TesterJonathan (Jon) TesterManchin becomes final Democrat to back bill preventing separation of immigrant families Trump signs VA reform bill without Democratic co-author The Hill's Morning Report — Sponsored by PhRMA — Primary results give both parties hopes for November MORE (D-Mont.).

Democrats argue they should not grant any concessions for Congress to fulfill what they view as its basic responsibilities.

Republicans expressed frustration and accused Reid of slowing down the negotiations. They say there is a substantial history of the president negotiating to periodically increase the nation’s borrowing authority.

“It’s time for Democrat leaders to take ‘yes’ for an answer,” McConnell said in a statement calling on the Democratic leadership to return to the negotiating table.

McConnell pressed Reid to accept a six-point plan sponsored by Sen. Susan CollinsSusan Margaret CollinsTrump plan to claw back billion in spending in peril Romney backs Laura Bush on border: 'We need a more compassionate answer' Amnesty International rips family separation policy: 'This is nothing short of torture' MORE (R-Maine) to fund the government for six months at an annualized rate of $986 billion, raise the debt limit, make modest reforms to ObamaCare, grant federal agencies more flexibility to manage their budgets and establish a bicameral budget conference.

Republicans say a group of six mostly centrist Democrats helped craft the proposal.

These lawmakers disputed McConnell’s claim that Democrats had dropped out of negotiations.

“We have been involved in productive, bipartisan discussions with Sen. Collins and other Republican senators, but we do not support the proposal in its current form,” they wrote in a joint statement. “There are negotiations but there is no agreement.”

Sens. Heidi HeitkampMary (Heidi) Kathryn HeitkampPoll: GOP challenger narrowly leads Heitkamp in North Dakota Trump plan to claw back billion in spending in peril Manchin becomes final Democrat to back bill preventing separation of immigrant families MORE (D-N.D.), Mark PryorMark Lunsford PryorMedicaid rollback looms for GOP senators in 2020 Cotton pitches anti-Democrat message to SC delegation Ex-Sen. Kay Hagan joins lobby firm MORE (D-Ark.), Joe DonnellyJoseph (Joe) Simon DonnellyManchin becomes final Democrat to back bill preventing separation of immigrant families Dems seek to leverage ObamaCare fight for midterms Todd Young in talks about chairing Senate GOP campaign arm MORE (D-Ind.), Joe ManchinJoseph (Joe) ManchinKaine shares photos of child detention facility: ‘The real Trump Hotel’ Manchin becomes final Democrat to back bill preventing separation of immigrant families Manchin touts support for Trump border wall in new ad MORE (D-W.Va.), Amy KlobucharAmy Jean KlobucharAmerica has reason to remember its consumer protection tradition when it comes to privacy Hillicon Valley: Judge approves AT&T-Time Warner deal in blow to DOJ | Dems renew push to secure state voting systems | Seattle reverses course on tax after Amazon backlash | Trump, senators headed for cyber clash | More Tesla layoffs Judge approves AT&T-Time Warner merger opposed by Trump MORE (D-Minn.) and Angus KingAngus Stanley KingManchin becomes final Democrat to back bill preventing separation of immigrant families Hillicon Valley: Judge approves AT&T-Time Warner deal in blow to DOJ | Dems renew push to secure state voting systems | Seattle reverses course on tax after Amazon backlash | Trump, senators headed for cyber clash | More Tesla layoffs Trump, senators headed for clash on cyber policy MORE (Maine), an independent who caucuses with Democrats, signed it.

Sen. Bob CorkerRobert (Bob) Phillips CorkerSenate chaplain offers prayer 'as children are being separated from their parents' Senate passes 6B defense bill This week: House GOP caught in immigration limbo MORE (R-Tenn.) told reporters in the Capitol Sunday afternoon that Democratic leaders bogged down talks by calling on Republicans to unwind the automatic spending cuts known as sequestration.

“They did [stall] over the last 24 hours but hopefully they’re going to get back on today,” he said.

Corker said negotiations faltered after the White House pushed Reid and Senate Democrats to attempt to lift the budget levels in any deal to reopen the government.

“It appeared the White House may have gotten a little involved with Senate leaders, Democratic leadership, to pull back away from the Budget Control Act,” he said.

Leaving the Capitol, Reid declined to say whether reforms to ObamaCare, such as delaying the medical device tax or setting up a verification process to prevent fraud in the insurance exchanges, was within the parameters of a potential deal.

“I’m not going to get into that,” he said.

When asked if he was more hopeful of a deal than at the beginning of the day, Reid replied, “sure.”

Durbin told reporters Saturday that the proposal to delay the medical device tax received a lukewarm reception in the Senate Democratic conference.

He said the American Hospital Association has already contacted the Senate leadership to see if other tax provisions in the Affordable Care Act are eligible for reform.

Republicans say Reid imperiled a possible deal when he pushed to raise funding levels above the caps set by the 2011 Budget Control Act.

"Now they want a spending bill that increases spending and dramatically will increase the debt," Sen. Rand PaulRandal (Rand) Howard PaulSenate passes 6B defense bill This week: House GOP caught in immigration limbo Amendments fuel resentments within Senate GOP MORE (R-Ky.), a McConnell ally, said on CNN's "State of the Union."

"It's a non-starter," he said.

Senate Budget Committee Chairwoman Patty MurrayPatricia (Patty) Lynn MurrayIBM-led coalition pushes senators for action on better tech skills training Members of Congress demand new federal gender pay audit Overnight Health Care — Sponsored by PCMA — Health chief grilled on Trump drug pricing plan, ObamaCare case MORE (D-Wash.) told Collins on the Senate floor Saturday that her plan was unacceptable because it would lock in sequestration.

Sen. Charles SchumerCharles (Chuck) Ellis SchumerDems must stop picking foxes to guard the financial hen house Schumer warns 'House moderates' against immigration compromise bill Trump knocks Schumer, touts North Korea summit in early morning tweet MORE (D-N.Y.) acknowledged Sunday that spending levels were a sticking point in the talks.

“The dispute has been how to undo the sequester,” Sen. Chuck SchumerCharles (Chuck) Ellis SchumerDems must stop picking foxes to guard the financial hen house Schumer warns 'House moderates' against immigration compromise bill Trump knocks Schumer, touts North Korea summit in early morning tweet MORE (D-N.Y.) said on "Face the Nation" on CBS on Sunday, explaining that Democrats want a mix of entitlement reforms and revenue increases.

Reid, however, denied that he had pressed Republicans to increase spending above the limits set by the 2011 budget law.

“Any talk about breaking the caps is not anything that came from us,” he said.

A Senate Democratic leadership aide said, “The suggestion that Democrats insist on breaking the budget caps is false and belied by the facts.

“Democrats all voted for the Senate-passed short-term CR at current sequester levels,” the aide added.

--Brendan Sasso contributed to this report, which was updated at 8:05 p.m.