U.S. Faces Mid-October Deadline to Raise Debt Limit

But there’s no guarantee — mainly because of partisan disagreement about whether to continue the automatic spending cuts known as the sequester that are slicing defense and domestic agency budgets.

Republicans favor restoring funding to the Pentagon while cutting domestic programs even more deeply. But Democrats want to roll back the automatic defense and non-defense cuts — in part through alternative spending reductions and tax increases on the wealthy.

Although Democrats say they are happy to debate how to fund the government, they add that they won’t negotiate over the separate issue of the debt ceiling.

Rep. Chris Van Hollen (Md.), the ranking Democrat on the House Budget Committee, said Republicans ought not put the nation’s creditworthiness at risk by demanding concessions in return for raising the debt limit.

“I don’t think the American public is going to stand for playing with what remains an economic weapon,” he said. “Playing around with the debt ceiling will create unnecessary economic harm.”

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