Mitch McConnell: 'Zero Chance' U.S. Fails to Raise Debt Ceiling -- 2nd Update
22 August 2017 - 6:49AM
Dow Jones News
By Richard Rubin and Kate Davidson
Senate Majority Leader Mitch McConnell (R., Ky.) said Monday
there was "zero chance" that the U.S. would fail to raise the
federal debt ceiling.
Mr. McConnell expressed confidence in Congress's ability to
avoid missing federal payments in advance of a legislative sprint
in September that will also address expiring government funding and
several other pressing items.
"There is zero chance, no chance we won't raise the debt
ceiling," he said at an event in his hometown, Louisville, Ky.,
with Treasury Secretary Steven Mnuchin.
Mr. Mnuchin said his "magic super Treasury powers" that allow
the government to conserve cash and avoid issuing new debt will run
out at the end of September.
The Treasury Department has been employing cash-conservation
measures since March, when the previous suspension of the debt
limit expired and the new ceiling was set at nearly $20
trillion.
If Congress doesn't raise the debt ceiling to allow new
borrowing, the U.S. could default on its debt or miss payments of
benefits and salaries.
"This is not about spending money," Mr. Mnuchin said. "This is
about paying for what we've spent, and we cannot put the credit of
the United States on the line."
Lawmakers return to Washington in September, after their August
recess and the Labor Day holiday. Republican leaders haven't said
yet exactly how the debt ceiling might get raised, and the
legislation will be a significant test for the GOP majorities in
Congress and President Donald Trump.
Mr. Mnuchin reiterated his preference for a "clean" debt-limit
increase without policy strings attached. But Republicans have for
years insisted on conditions such as spending cuts.
In the Senate, a debt-limit bill will likely need to be
bipartisan, because it would take 60 votes to overcome procedural
hurdles.
House Minority Whip Steny Hoyer (D., Md.) said in May that a
"significant number" of Democrats would vote for a clean debt-limit
bill. That would match the position Democrats held under President
Barack Obama, who also asked for clean increases.
Other Democrats, however, may be wary of giving up leverage. The
decision could be even more difficult for them if the debt limit is
included in the same bill as government funding, health-policy
changes or funding for construction of a border wall.
Write to Richard Rubin at richard.rubin@wsj.com and Kate
Davidson at kate.davidson@wsj.com
(END) Dow Jones Newswires
August 21, 2017 16:34 ET (20:34 GMT)
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