Bloomberg Government subscribers get the stories like this first. Act now and gain unlimited access to everything you need to know. Learn more.
The debt limit agreement forged by President Joe Biden and Speaker Kevin McCarthy heads into a crucial final stretch with less than a week to win congressional passage before a June 5 default deadline.
Biden and McCarthy (R-Calif.) spent much of the Memorial Day holiday lobbying members of their respective parties to build enough support ahead of a House vote expected Wednesday.
If the two leaders can overcome expected opposition from their flanks, the deal goes to the Senate, where a single objection risks triggering time-consuming procedures that threaten to bring the US right to the brink of a first-ever default.
“I never say I’m confident about what the Congress is going to do, but I feel very good about it,” Biden told reporters Monday.
The bill sets the course for federal spending through 2025 and will suspend the debt ceiling until Jan. 1, 2025, likely putting off another fight over federal borrowing authority until the middle of that year. In exchange for Republican votes for the suspension, Democrats agreed to cap federal spending for the next two years.
Read More: Debt Deal to Hit a US Economy Already Facing Recession Risk
Across the full House, are at least 10 GOP “no” votes. Rep. Tom Emmer (Minn.), Republican’s chief vote counter, worked the phones over the weekend to prevent that number from swelling much beyond that. His efforts will shift today to more direct attempts at persuasion as lawmakers return to the Capitol.
Sen. Mike Lee (R-Utah) has threatened to hold up passage of a bill he doesn’t like, and any senator has the power to force days of delay. At least three other conservative GOP senators made clear in recent days they oppose the legislation.
House Democratic leader Hakeem Jeffries (D-N.Y.) and his top vote counter, Rep. Katherine Clark (D-Mass.), are also trying to pin down votes they need for the bipartisan compromise. Complicating their efforts is the Sierra Club, which urged opposition Monday citing provisions that would expedite approvals for a natural gas pipeline running across West Virginia and time limits it would impose on environmental reviews of energy projects.
Senators in both parties could also insist on voting on amendments to address the spending caps. Defense hawks are unhappy with a 3.3% increase proposed by Biden not keeping up with inflation. Read the full storyfrom Billy House, Steven T. Dennis, and Laura Litvan.
More on the Debt Deal
Here’s a look at the most contentious and economically consequential provisions of the legislation Biden and McCarthy unveiled on Sunday.
The debt limit deal would rein in spending on some federal government services but barely dents the roughly $20 trillion in combined budget deficits projected over the next decade.
The cap on government spending in Washington’s deal to raise the federal debt limit adds a fresh headwind to a US economy already burdened by the highest interest rates in decades and reduced access to credit.
Shalanda Young found herself last week in a roomful of hand-picked peacemakers at the highest-stakes juncture of her career — and arguably of her boss’s legacy.
Lawyers representing government contractors have been keeping track of the legal uncertainties exposed by even the possibility of a debt limit breach, expressing concern for the future if the government doesn’t make certain procurement-related laws more explicit.
- Senators return at 3 p.m. with a judicial confirmation vote set for 5:30 p.m.
- The House is back at 2 p.m. with votes at 6:30 p.m. on a slate of bills to paring back finance regulations. The House Rules Committee meets at 3 p.m. on the debt bill.
- The president departs Delaware at 10 a.m. and arrives at the White House shortly after 11 a.m.
- Press Secretary Karine Jean-Pierre holds a press briefing alongside OMB Director Shalanda Young at 2:45 p.m.
Politics & Probes
Florida Gov. Ron DeSantis (R) studiously avoided even mentioning Donald Trump’s name for months, instead making veiled references to the “culture of losing” in the Republican party. Now, he’s drawing contrasts with the former president on a range of issues including abortion, immigration, and the economy.
Republicans are chipping away at the power of the blue-county judges in Ohio’s capital as the politics of the state and the city grow farther apart.
Beijing vs Washington
Commerce Secretary Gina Raimondo said the US “won’t tolerate” the recent decision by Chinese authorities to ban chips by Micron in some critical sectors, using her sharpest language yet to describe Washington’s reaction.
- Top US and Japan commerce officials agreed to work together to explore the development of next generation semiconductors as part of efforts to maintain regional economic order. Read more
Tesla opposes “decoupling” and is willing to expand business in China, Elon Musk says in a meeting with China’s Foreign Minister Qin Gang in Beijing, according to a government statement.
China declined a US request for the countries’ defense chiefs to meet this week, Beijing’s latest rebuff of the Biden administration’s efforts to restore ties with key officials amid heightened tensions.
To contact the editor responsible for this story: Kayla Sharpe at email@example.com