menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

The GOP debt limit jam

1 0
25.01.2025

*{box-sizing:border-box}body{margin:0;padding:0}a[x-apple-data-detectors]{color:inherit!important;text-decoration:inherit!important}#MessageViewBody a{color:inherit;text-decoration:none}p{line-height:inherit}.desktop_hide,.desktop_hide table{mso-hide:all;display:none;max-height:0;overflow:hidden}.image_block img div{display:none}sub,sup{font-size:75%;line-height:0}#converted-body .list_block ol,#converted-body .list_block ul,.body [class~=x_list_block] ol,.body [class~=x_list_block] ul,u .body .list_block ol,u .body .list_block ul{padding-left:20px} @media (max-width:620px){.desktop_hide table.icons-outer{display:inline-table!important}.image_block div.fullWidth{max-width:100%!important}.mobile_hide{display:none}.row-content{width:100%!important}.stack .column{width:100%;display:block}.mobile_hide{min-height:0;max-height:0;max-width:0;overflow:hidden;font-size:0}.desktop_hide,.desktop_hide table{display:table!important;max-height:none!important}.reverse{display:table;width:100%}.reverse .column.first{display:table-footer-group!important}.reverse .column.last{display:table-header-group!important}.row-10 td.column.first .border,.row-12 td.column.first .border,.row-8 td.column.first .border{padding:5px 5px 15px 25px;border-top:0;border-right:0;border-bottom:0;border-left:0}.row-10 td.column.last .border,.row-12 td.column.last .border,.row-8 td.column.last .border{padding:5px 20px 25px 5px;border-top:0;border-right:0;border-bottom:0;border-left:0}}

Welcome to The Hill's Business & Economy newsletter

{beacon}


Business & Economy


Business & Economy

The Big Story

GOP faces tough decision on debt limit

Some House Republicans are getting anxious about the lack of clarity over how leaders are approaching the default.

© Greg Nash

President Trump is pressuring Republicans to not allow Democrats to use the borrowing limit as a leverage point.

But fiscal hawks in the Republican conference could make any party-line debt limit bump impossible. And there is not a clear way to get Democratic support for a debt limit hike without significant concessions.

Republican leaders will have to make a play call soon. Government funding runs out March 14, and they are hoping to start teeing up the legislative vehicle for Trump’s agenda in February.

Former Treasury Secretary Janet Yellen said in a letter last week that the U.S. would have to start using “extraordinary measures” to meet its financial obligations, and outside analysts project that the “X-date” on which the U.S. could actually default in absence of congressional action will be sometime this summer.

House Majority Leader Steve Scalise (R-La.) after a meeting with Trump at the White House on Tuesday confirmed that the idea of pairing the debt limit with government funding is in the mix.

“We haven’t made a final decision on the debt ceiling,” Scalise said, adding, “Obviously, you’re looking at government funding as well, and there’s possibly an avenue where we would have the debt ceiling in the government funding bill.”

Such a plan, though, would mean GOP leaders — who can only afford to lose a couple of votes on any party-line measure — would have to rely on Democrats to pass the debt increase.

The Hill’s Emily Brooks has more here.

Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.

Did someone forward you this newsletter? Subscribe here.

Essential Reads

Key business and economic news with implications this week and beyond:

© The Hill