Photo Credit: APBy Jake Sherman, John Bresnahan and Seung Min Kim.
Everyone is asking the same question: What’s next?
For the second time this fall, Speaker John Boehner has had to pull legislation to lift the debt ceiling because of concerns from conservative lawmakers that their leadership was heading down the wrong path.
But this time, the economy could be on the brink of disaster. The United States runs out of borrowing authority on Thursday, and it does not appear at the moment that House Republicans are willing — or able — to lift the nation’s debt ceiling.
“We need to be prepared tomorrow to make some decisions,” said House Rules Committee Chairman Pete Sessions of Texas.
In practical terms, Boehner (R-Ohio), Majority Leader Eric Cantor (R-Va.) and Majority Whip Kevin McCarthy’s inability to persuade 217 lawmakers to vote for their proposal means that the House could be sidelined in a fiscal fight they picked. Action could be rapidly kicked over to Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.).
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Senate leaders race to draft debt-limit bill after House effort collapses
By Lori Montgomery and Paul Kane.
A campaign to persuade House Republicans to lift the federal debt limit collapsed in humiliating failure Tuesday, leaving Washington careering toward a critical deadline just two days away, with no clear plan for avoiding a government default.
Senate leaders quickly moved to pick up the pieces, saying they were “optimistic” that they could reach agreement to advance an alternative proposal that would raise the debt limit through Feb. 7 and end a government shutdown, now in its third week.
But it was unclear whether a deal struck by Senate Majority Leader Harry M. Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) could pass the Senate before the Treasury Department exhausts its borrowing power Thursday.
Meeting that deadline would be impossible if Sen. Ted Cruz (R-Tex.) or other conservative hard-liners chose to throw up roadblocks, Democrats said. Republican leaders were leaning on Cruz and his allies to avoid unnecessary delays.
“The clock is ticking,” said Sen. John Thune (R-S.D.), the No. 3 Republican in the Senate. “Given the consequence of what we’re talking about here, . . . I would hope that we would have genuine interest among all parties in terms of trying to get this done as quickly as possible.”
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