Debt ceiling

Biden plots debt ceiling strategy with Pelosi, Schumer

The president discussed the possibility of raising the debt ceiling via budget reconciliation, according to two Democrats familiar with the conversation.

By BURGESS EVERETT and HEATHER CAYGLE

President Joe Biden discussed the possibility of raising the debt ceiling via budget reconciliation on Monday evening on a telephone call with Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer, the latest sign that Democrats are searching for a way around entrenched GOP opposition.

No final decision was made on the call, according to two Democrats familiar with the conversation. Senate Republicans on Monday evening blocked Biden and congressional leaders’ plan to raise the debt ceiling through the midterms and fund the government into December, leaving Democrats fuming and searching for a way to avoid a shutdown on Friday and a default in October.

Schumer has been walking his caucus through how cumbersome the process of using the arcane budget reconciliation process to raise the debt ceiling could be and the many pitfalls ahead if leaders choose to follow that route. Schumer has warned his caucus that the gambit would be “burdensome and untenable,” according to one of the Democrats.

Senate Democrats also might need to cancel a mid-October recess to raise the debt ceiling on their own via reconciliation, which allows the party to avoid a GOP filibuster but would require negotiations with the parliamentarian and some degree of cooperation from Republicans. Senate Minority Leader Mitch McConnell confidently predicted that Democrats will raise the debt ceiling “because we always do,” though typically both parties support an increase.

“I know the country is not going to default. I know they have the votes to do this,” McConnell said in an interview. “I don't have any doubt that they will take care of this.”

But Schumer has more plans in mind for filleting Republicans as the party of “default” and may force them to vote a second time on the House-passed funding and debt proposal they blocked on Monday. House leaders are also considering passing a spending bill that leaves out the debt limit and sending the Senate a stand-alone debt limit bill in the coming days.

Pelosi told Democrats that “there might be a timely vote” on the debt limit as soon as this week and asked if there’s anyone in her caucus “who will not vote to preserve the full faith and credit in the United States," according to Democratic sources.