Take Representative Kevin Cramer, Republican of North Dakota. Approached by reporters, Mr. Cramer launched into extended praise of the short-term debt limit increase proffered by Mr. McConnell. He called it elegant, lauding the Senate leader’s craftiness in preserving the filibuster and depriving Democrats of a potent political argument against his party. It also averted a potential calamitous default. But Mr. Cramer still would not vote to allow it to move forward.
Understand the U.S. Debt Ceiling
Card 1 of 6What is the debt ceiling? The debt ceiling, also called the debt limit, is a cap on the total amount of money that the federal government is authorized to borrow via U.S. Treasury bills and savings bonds to fulfill its financial obligations. Because the U.S. runs budget deficits, it must borrow huge sums of money to pay its bills.
When will the debt limit be breached? After Senate leaders agreed to a short-term deal to raise the debt ceiling on Oct. 7, the Treasury estimated that the government can continue borrowing through Dec. 3. The deal sets up yet another consequential deadline for the first Friday in December.
Why does the U.S. limit its borrowing? According to the Constitution, Congress must authorize borrowing. The debt limit was instituted in the early 20th century so the Treasury did not need to ask for permission each time it needed to issue bonds to pay bills.
What would happen if the debt limit was hit? Treasury Secretary Janet Yellen told Congress that inaction on raising the debt limit could lead to a self-inflicted economic recession and a financial crisis. She also said that failing to raise the debt ceiling could affect programs that help millions of Americans, including delays to Social Security payments.
Do other countries do it this way? Denmark also has a debt limit, but it is set so high that raising it is generally not an issue. Most other countries do not. In Poland, public debt cannot exceed 60 percent of gross domestic product.
What are the alternatives to the debt ceiling? The lack of a replacement is one of the main reasons the debt ceiling has persisted. Ms. Yellen said that she would support legislation to abolish the debt limit, which she described as “destructive.” It would take an act of Congress to do away with the debt limit.
“I don’t think I will,” he said.
In the end, 11 Republicans, including retiring members with nothing to lose and members of the leadership, bit the bullet and sent the bill forward. It ultimately passed with only Democratic votes, and still must be approved by the House before it hits President Biden’s desk. The action is expected next week, mere days before a projected default.
Senator Roy Blunt, the veteran Missouri Republican who is retiring and was one of the 11, spoke for many when he muttered in the hallway: “Can’t explain anything in this place.”
The dysfunction was evidently contagious. Even the subway that ferries lawmakers, staff, media and visitors between the Capitol and the Senate office buildings broke down on Thursday, trapping a couple of luckless riders for a brief period. It, too, had reached its limit.
The underlying debt fight is over whether Democrats will raise the debt ceiling through regular procedures or via a more convoluted budget process, a technical distinction so fine that it is surely indistinguishable to virtually every American not intimately familiar with the Budget Control Act.
“I don't think they understand it a bit,” said Senator John Cornyn, Republican of Texas, of members of the public. “It is confusing for people who work here.”
“The debt ceiling debate is absurd with a capital A,” said Senator Ron Wyden, the Oregon Democrat who leads the Finance Committee.