Debt Ceiling Debate Continues

Last week, the Treasury Department announced that it will begin to implement special accounting measures to delay the date when the U.S. will no longer be able to pay its obligations.  Republicans continue strategizing how to deal with the debt limit before hitting that date.  One option under consideration is to lift the debt ceiling as part of the budget reconciliation package.  Budget reconciliation rules would require raising the limit by a specified amount, rather than suspending the borrowing limit to some future date. And passage of a budget reconciliation bill will require near unanimous Republican support.  But about four dozen returning House Republicans have never voted in support of a debt ceiling hike that has been signed into law. And 33 new GOP House members have never had to vote on any such proposal.  It is very possible that leadership would not be able to convince nearly all of those members to support hiking the debt ceiling, particularly if the reconciliation package does not also include trillions in spending cuts that themselves would garner pushback from other members of the party. If Republicans cannot include a debt limit increase in a reconciliation bill, they will have to ask Democrats to help passing it, likely as part of a government funding measure or a disaster aid bill.  Obviously, Democrats would demand something in return.  Stay tuned as this debate continues to unfold!