Biden Seeks Deal With Holdout Dems To Push Spending Bill Ahead
President Joe Biden is focusing his attentions on striking a deal with Democratic Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, who say the $3.5 trillion reconciliation bill is too big. Meanwhile, a progressive group of House Democrats dig in over the infrastructure bill, scheduled for a vote tomorrow. Those high-stakes negotiations are set against a tense backdrop on the Hill, where lawmakers must also come up with ways to fund the government and pay U.S. debts.
Stat:
The Federal Covid-19 Response Will Continue If There’s A Shutdown, Mostly
The federal government’s efforts to address the Covid-19 pandemic will continue even if the government shuts down this week, a Biden administration official tells STAT — but key health agencies will still face major staff shortages. The Senate has until Thursday night to prevent a government shutdown, and things are not looking good: Late Monday, Republicans blocked a procedural vote as part of a standoff related to raising the government’s debt limit. (Florko, 9/28)
AP:
Sign Of Progress, Biden Digs In To Strike Deal On $3.5T Plan
Pressure mounting but with signs of progress, President Joe Biden will hunker down at the White House to try to strike a deal and win over two holdout Democratic senators whose support is needed for his potentially historic $3.5 trillion government overhaul. With Republicans solidly opposed and no Democratic votes to spare, Biden canceled a Wednesday trip to Chicago that was to focus on COVID-19 vaccinations so he could dig in for another day of intense negotiations with lawmakers ahead of crucial votes. (Mascaro and Miller, 9/29)
Politico:
Manchin, Sinema Leave Dems In Lurch As Biden Agenda Teeters
Democrats wanted clarity Tuesday from Sens. Joe Manchin and Kyrsten Sinema after back-to-back meetings with President Joe Biden. They didn’t get it. During a private meeting with the president, Sinema made clear she’s still not on board with the party’s $3.5 trillion social spending plan and is hesitant to engage on some specifics until the bipartisan infrastructure package passes the House, according to a person who spoke with her. (Levine and Everett, 9/28)
The Hill:
Left Warns Pelosi They'll Take Down Biden Infrastructure Bill
Liberals on Tuesday fired a shot across the bow at Democratic leaders by warning that a bipartisan infrastructure bill cannot pass the House as long as Senate centrists remain noncommittal on the larger social benefits package at the heart of President Biden's agenda. The threat is the latest challenge facing Speaker Nancy Pelosi (D-Calif.) and other party leaders, who have scheduled a Thursday vote on the Senate-passed $1.2 trillion public works proposal. The timeline reflects Pelosi's promise to moderate House Democrats, who have sought to divorce the bipartisan infrastructure bill from the larger and more divisive "family" benefits package. (Lillis and Wong, 9/28)
NBC News:
'Mutually Assured Destruction': House Liberals Dig In On Halting Infrastructure Bill
House progressives are digging in on their resistance to passing the infrastructure bill this week, repeating their threat to block the measure despite Speaker Nancy Pelosi's call to pass it quickly and tackle the social safety net package later. Rep. Pramila Jayapal, D-Wash., the chair of the progressive caucus, which boasts 95 House members, told NBC News that "nothing has changed" and more than half her caucus is prepared to vote down the infrastructure bill if it comes up before the larger tax-and-spending bill has passed the Senate. (Kapur, Caldwell and Haake, 9/28)
On the double threats of debt default and a government shutdown —
Politico:
Democrats Back Off Debt Fight To Stop Shutdown
The Senate is expected to vote as early as Wednesday on a revamped spending bill that would forestall a government shutdown at the end of the week after Democrats ditched action on the debt limit amid staunch Republican resistance. The standalone continuing resolution comes after Senate Republicans refused to fast-track a package on Tuesday that pairs government funding with suspension of the debt ceiling through the midterms next year. Several GOP senators have said they will support a bill to prevent a shutdown and deliver disaster aid to storm-battered states, as long as the package does not lift the cap on how much the government can borrow. (Emma and Levine, 9/28)
Politico:
Biden Opposes Changing Senate Rules To Raise Debt Limit
The White House said Tuesday that President Joe Biden opposes changing the filibuster to suspend or raise the debt ceiling, closing off a break-the-glass option to avoid financial calamity. White House press secretary Jen Psaki confirmed that Biden’s position on reforming the filibuster has not changed as Democrats search for options to deal with the approaching debt ceiling deadline amid persistent refusal from Senate Republicans to step in and help. Earlier in the day, Treasury Secretary Janet Yellen warned congressional leaders that her department could run out of money by Oct. 18, triggering a disastrous default on the government’s debt that would cripple the entire U.S. economy. (Cadelago, 9/28)
The Hill:
McConnell Blocks Schumer Attempt To Bypass Filibuster On Debt Hike
Senate Minority Leader Mitch McConnell (Ky.) blocked an effort by Senate Majority Leader Charles Schumer (D-N.Y.) to bypass the 60-vote legislative filibuster on a debt ceiling hike. Schumer tried to get an agreement to set up a simple-majority vote on a bill to suspend the nation's borrowing limit, which would bypass the filibuster and let Democrats raise it without GOP support. (Carney, 9/28)
Fed Chief Janet Yellen warns of the consequences if a deal isn't met —
The New York Times:
Yellen Warns Congress That Debt Limit Must By Raised By Oct. 18
Treasury Secretary Janet L. Yellen warned lawmakers on Tuesday of “catastrophic” consequences if Congress failed to raise or suspend the statutory debt limit in less than three weeks, saying inaction could lead to a self-inflicted economic recession and a financial crisis. At a Senate Banking Committee hearing where she testified alongside the Federal Reserve chair, Jerome H. Powell, Ms. Yellen laid out in explicit terms what she expects to happen if Congress does not deal with the debt limit before Oct. 18, which the Treasury now believes is when the United States will actually face default. In her most public expression of alarm about the matter, she described the standoff within Congress as a self-inflicted wound of enormous proportions. (Rappeport, Cochrane and Smialek, 9/28)
The Hill:
Yellen Chastises GOP As Debt Default Countdown Begins
Treasury Secretary Janet Yellen and Senate Democrats on Tuesday blasted Republicans for refusing to back a bill that would raise the federal debt limit and allow the government to pay off expenses approved over more than a decade by Congress and presidents from both parties. Yellen urged Republicans to take responsibility for their role in adding trillions to the national debt and raise the federal borrowing limit to prevent an economic disaster after informing lawmakers that the U.S. is on track to default on Oct. 18, pinning a specific “X-date” for the first time since the debt ceiling was reimposed Aug. 1. (Lane, 9/28)
