WASHINGTON – Democrats are working out details to reach agreement on a package of social programs from President Joe Biden while working to resolve disputes over how to resolve the debt ceiling as the nation moves closer to defaulting payment.
House progressives spoke to Biden on Monday night, who told them they would have to cut their spending bill by more than $ 1,000 billion to appease moderates in the Senate, who say the $ 3.5 trillion price tag plan dollars is too high, according to two sources familiar with the negotiations.
Democrats on both sides of the party and both houses worked overtime to find a solution, with White House negotiators meeting with Senate Majority Leader Chuck Schumer, DN.Y., and House Speaker Nancy Pelosi, D-Calif., Late Monday night.
House moderates spoke to Biden on Tuesday, who told them, according to a Democratic House aide familiar with the conversations, that they are more aligned than they appear.
The Senate is also set to vote on Wednesday to end debate on a bill that would suspend the debt ceiling until 2022. 10 Republican senators are unlikely to join the 50 Democratic senators to allow the bill. law to be put to a final vote.
The Oct. 18 deadline for which the Treasury Department said the United States could begin to default on its debts – which it never did – is approaching, with options for resolving the issue narrowing.
Senatorial Minority Leader Mitch McConnell, R-Ky., Said on Tuesday that the only way Democrats could solve the problem – since Republicans insist they do it alone – was through a process called reconciliation. , which would allow the bill to pass with only Democrat support. Democrats, including Senate Majority Leader Chuck Schumer, DN.Y., have opposed the use of this process.
Following:Democrats and Republicans want the debt ceiling raised: so why the delay on Capitol Hill?
Business leaders and AARP chief to meet with Biden on debt ceiling
Nasdaq chief AARP – along with banking executives and representatives from defense, real estate and other sectors – will meet with President Joe Biden on Wednesday as administration increases pressure on Congress to increase the country’s borrowing limit.
The AARP CEO was invited to the White House meeting to stress that Social Security and Medicare payments would be compromised by what the administration calls a “Republicans-created default.”
The White House also said that even a “near miss” would raise interest rates on credit cards, auto loans and home loans.
The following business leaders are present, either virtually or in person, to help the president make this point:
- Jane Fraser, CEO of Citi
- Greg Hayes, CEO of Raytheon Technologies
- Charlie Oppler, President of the National Association of Realtors
- Adena Friedman, President and CEO of Nasdaq
- Punit Renjen, Global CEO of Deloitte LLP
- Jamie Dimon, CEO of JPMorgan Chase
- Pat Gelsinger, CEO of Intel
- Brian Moynihan, CEO of Bank of America
– Maureen Groppe
White House warning: it could take decades to recover from a default
Trying to increase the pressure on Republicans, the White House Council of Economic Advisers warned on Wednesday that if Congress does not raise or suspend the limit on how much the United States can borrow to pay off its debts. by October 18, it could take decades for the nation to fully recover from the consequences.
“In short, the United States has never intentionally defaulted on its obligations for one reason above all: the self-inflicted economic ruin of doing so would be catastrophic,” council members wrote in a blog post.
In the President’s Economic Advisors’ blog post titled “Life After Default,” council members outline the basic functions of the federal government that would be at risk, including maintaining national defense and the public health system. Social security benefits and other direct assistance to families could be compromised.
The economic consequences of the default would include a weakened dollar, falling stocks, rising interest rates and a deterioration in the country’s credit rating.
“These and other consequences could trigger a recession and a credit market freeze that could affect the ability of US businesses to operate,” the advisers wrote.
The mere threat of default harms the economy, they added, while a genuine indefinite default would inflict a devastating blow.
– Maureen Groppe
Hearing of the Senate Judiciary Committee on voting rights
The Senate Judiciary Committee meets on Wednesday to consider voting rights.
The committee will discuss the John Lewis Advancement Voting Rights Act, which would seek to reinstate the Department of Justice’s review of electoral law changes in states with a history of discrimination.
Democrats tried to pass massive, sweeping voting rights legislation called the For the People Act, which called for expanding early voting, allowing same-day registration and lowering ID requirements.
When that did not meet with Republicans in the Senate, Democrats unveiled a new election bill in September. This bill, although reduced in scope, would also establish electoral rules mandated by the federal government.
Senate Majority Leader Chuck Schumer, DN.Y., said Tuesday morning that the Senate could vote on the John Lewis Advancement Bill “in the coming weeks.”
– Savannah Behrmann