GOP debt ceiling uncertainty grows

GOP debt ceiling uncertainty grows

Congressional Republicans are uncertain about the best path forward now that the deadline for increasing the nation’s debt ceiling is approaching faster than expected.

Lawmakers had expected that a hike to the debt limit wouldn’t be needed until later this year. But due to revenue falling short of expectations, the Trump administration now says it might exhaust its “extraordinary measures” to avoid default by late summer. 

In the past, Republicans have sought policy concessions for an increase in the debt limit. But it remains to be seen whether they will pursue that same strategy now that they control both chambers of Congress and the White House.

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“I think it’s going to be complicated, given the other things we have to do, to try and attach a lot of policy to the debt limit,” said Sen. John ThuneJohn Randolph ThuneThe Hill's Morning Report - Presented by Facebook - White House, Dems play blame game over evictions GOP skepticism looms over bipartisan spending deal Graham's COVID-19 'breakthrough' case jolts Senate MORE (S.D.), the No. 3 Republican in the Senate and a member of the Senate Finance Committee. 

“We’re going to have budget, debt ceiling, tax reform, a whole bunch of things sort of hitting at the same time.” 

Treasury Secretary Steven Mnuchin has urged lawmakers to pass a “clean” increase in the debt ceiling — essentially new borrowing authority with no strings attached — before they leave town in August for a five-week recess.

Failure to pass an increase, the administration says, would result in the first-ever U.S. default on its debt, which could send borrowing costs booming and potentially ignite a financial firestorm.

Speaker Paul RyanPaul Davis RyanWisconsin GOP quietly prepares Ron Johnson backup plans RealClearPolitics reporter says Freedom Caucus shows how much GOP changed under Trump Juan Williams: Biden's child tax credit is a game-changer MORE (R-Wis.) said the timetable for debt ceiling would move up, given the administration’s latest warnings.

“We're going to be talking with our members and with the administration on how to resolve the debt ceiling,” he said. 

But an increase in the debt limit is no easy task, threatening to stoke division in the GOP. 

Conservatives have in the past demanded concessions in return for an increase to the borrowing limit, most notably during a dramatic standoff in 2011 that resulted in the first-ever downgrade of U.S. debt. 

Many conservatives remain skeptical that the nation will default and appear poised to again seek new curbs on federal spending in return for a debt increase.

While the administration is urging action without politics, the Freedom Caucus has come out against a “clean lift,” potentially complicating Ryan’s decision on how to advance legislation in the House.  

If conservatives demand concessions in return for a debt hike, Ryan could face a choice that often bedeviled his predecessor, Speaker John BoehnerJohn Andrew BoehnerA new kind of hero? Last week's emotional TV may be a sign GOP up in arms over Cheney, Kinzinger Freedom Caucus presses McCarthy to force vote to oust Pelosi MORE (R-Ohio): whether to work with Democrats on a “clean” hike or work with conservatives to pass legislation on a party-line vote.

The uncertainty about the next steps was heightened by the Trump administration’s sudden adjustment to its timeline. Many lawmakers seemed caught off guard.

When asked his approach to the debt ceiling, Sen. Orrin HatchOrrin Grant HatchDrug prices are declining amid inflation fears The national action imperative to achieve 30 by 30 Financial market transactions should not be taxed or restricted MORE (R-Utah), who heads the Senate Finance Committee, said, “I haven’t thought about it.” Another Finance Committee member, Sen. Tim ScottTimothy (Tim) Eugene ScottTrump helps raise million in first six months of 2021 Senate passes bill to award Congressional Gold Medal to first Black NHL player Scott: 'There is hope' for police reform bill MORE (R-S.C.), said he simply didn’t know what the approach should be. 

Thune said he wasn’t sure if Republicans would coalesce around a specific spending reform or simply agree to a clean lift, which could require Democratic votes.

Sen. Mike EnziMichael (Mike) Bradley EnziOn The Money: Biden, Pelosi struggle with end of eviction ban | Trump attorney says he will fight release of tax returns McConnell warns Democrats against 'artificial timeline' for infrastructure deal The Hill's Morning Report - Presented by Facebook - Crunch time for bipartisan plan; first Jan. 6 hearing today MORE (R-Wyo.), who heads the Senate Budget Committee and is also a member of the Finance Committee, suggested lawmakers could use the debt ceiling bill to revive an overhaul of the budgeting process that both parties have supported.

“Last year we held 13 hearings on budget reform and seemed to have a pretty good path towards bipartisan changes that would make the budget more responsible for the country,” he said.

The effort fell apart, he added, because the Budget Committee’s ranking member, Sen. Bernie SandersBernie SandersThe Hill's Morning Report - Presented by Facebook - White House, Dems play blame game over evictions The Memo: Left pins hopes on Nina Turner in Ohio after recent defeats Five things to watch in two Ohio special election primaries MORE (I-Vt.), was not included in the process due to his presidential campaign schedule and did not sign off on the plans. 

“So we weren’t able to move forward with those, but I’m hoping that a good many of those, that both sides believe in, will be a part of some incentive for changing the debt ceiling,” Enzi said.

Democrats, who during the Obama administration urged Republicans to support drama-free debt ceiling hikes, are mulling whether to take advantage of the moment and press Republicans for concessions of their own.