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.

Democrats have decided to ratchet up pressure on Senate Republican Leader Mitch McConnellAddison (Mitch) Mitchell McConnellLawmakers feel pressure on guns Bipartisan group of House lawmakers urge action on Export-Import Bank nominees Curbelo Dem rival lashes out over immigration failure 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 ReidWATCH: There is no Trump-Russia collusion and the media should stop pushing this The demise of debate in Congress ‘North by Northwest,’ the Carter Page remake 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 DurbinAmerica’s waning commitment to the promise of the First Amendment Senate rejects Trump immigration plan What to watch for in the Senate immigration votes 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) TesterWith vote against Brownback, Democrats abandon religious freedom Democrat Manchin: Pence attacks prove ‘they don't want bipartisanship’ in Trump admin Tester invited the Border Patrol Union’s president to the State of the Union. What does that say to Dreamers?   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 CollinsOvernight Tech: Judge blocks AT&T request for DOJ communications | Facebook VP apologizes for tweets about Mueller probe | Tech wants Treasury to fight EU tax proposal Overnight Regulation: Trump to take steps to ban bump stocks | Trump eases rules on insurance sold outside of ObamaCare | FCC to officially rescind net neutrality Thursday | Obama EPA chief: Reg rollback won't stand FCC to officially rescind net neutrality rules on Thursday 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 HeitkampSenate rejects Trump immigration plan Cramer to announce North Dakota Senate run on Friday Senate Democrats not sold on bipartisan immigration deal 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 DonnellyDemocrats now attack internet rules they once embraced Dem group launches M ad buy to boost vulnerable senators Senate rejects Trump immigration plan MORE (D-Ind.), Joe ManchinJoseph (Joe) ManchinPavlich: The claim Trump let the mentally ill get guns is a lie Toomey to introduce bill broadening background checks for firearms Scott Walker backs West Virginia attorney general in GOP Senate primary MORE (D-W.Va.), Amy KlobucharAmy Jean KlobucharOvernight Health Care: Trump eases rules on insurance outside ObamaCare | HHS office on religious rights gets 300 complaints in a month | GOP chair eyes opioid bill vote by Memorial Day Overnight Regulation: Trump to take steps to ban bump stocks | Trump eases rules on insurance sold outside of ObamaCare | FCC to officially rescind net neutrality Thursday | Obama EPA chief: Reg rollback won't stand Dems seek reversal of nursing home regulatory rollback MORE (D-Minn.) and Angus KingAngus Stanley KingLawmakers are failing in duty to respond to the American people Congress fails miserably: For Asian-Americans, immigration proposals are personal attacks GOP senators float fallback plan to protect Dreamers MORE (Maine), an independent who caucuses with Democrats, signed it.

Sen. Bob CorkerRobert (Bob) Phillips CorkerCongress punts fight over Dreamers to March Drama surrounding Shulkin — what is the future of VA health care? Blackburn pushes back on potential Corker bid: 'I'm going to win' 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 PaulDem wins Kentucky state House seat in district Trump won by 49 points GOP's tax reform bait-and-switch will widen inequality Pentagon budget euphoria could be short-lived 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 Murray30 million people will experience eating disorders — the CDC needs to help Mulvaney remarks on Trump budget plan spark confusion Overnight Finance: Mulvaney sparks confusion with budget remarks | Trump spars with lawmakers on tariffs | Treasury looks to kill 300 tax regs | Intel chief's warning on debt 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 SchumerDemocrats now attack internet rules they once embraced Schumer: Trump budget would ‘cripple’ gun background checks Schumer: Senate Republicans' silence 'deafening' on guns, Russia 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 SchumerDemocrats now attack internet rules they once embraced Schumer: Trump budget would ‘cripple’ gun background checks Schumer: Senate Republicans' silence 'deafening' on guns, Russia 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.