White House, Congress inch toward debt, budget deal
By Jordain Carney and Niv Elis - 07/17/19 06:00 AM EDT
Lawmakers and key administration officials say they are getting close to a budget deal that will allow them to avoid defaulting on the debt as they barrel toward a break at the end of the month.
Congress has a matter of days before it’s scheduled to leave for the August recess, raising the stakes for negotiators to clinch an agreement quickly.
The optimism comes as Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin, viewed as the two key players in the talks, have engaged in a series of phone calls over the past week and were expected to speak again Tuesday.
“They seem to me to be moving closer and closer together,” said Senate Appropriations Committee Chairman Richard Shelby (R-Ala.).
The progress marks a U-turn from earlier this month, when discussions between Democrats and the White House derailed.
Sen. Shelley Moore Capito (R-W.Va.), a member of leadership and the Appropriations Committee, said there was “cautious optimism” about a deal, while Senate Minority Leader Charles Schumer (D-N.Y.) characterized the negotiations as “going quite well right now.”
Helping drive the new burst of momentum is the looming deadline for needing to raise the country’s debt ceiling and avoid a default, which would have catastrophic consequences for the world’s financial markets. The Treasury Department has been using “extraordinary measures” since March to extend the nation’s borrowing limit.
Lawmakers had thought they had until late September or potentially October to raise the debt ceiling. But Mnuchin, in a letter last week to congressional leadership, said the deadline could hit in early September and formally requested that Congress act before they leave for the August recess.
The new debt ceiling deadline also moves up the time frame for getting a deal to raise the defense and nondefense spending caps and avoid deep across-the-board cuts known as sequestration. That pressure has helped push talks forward.
“I know, at least on our side, there’s some optimism we might get there, probably,” said Republican appropriator Rep. Tom Cole (Okla.). “That’s more because of the debt concern. I think both sides legitimately know we can’t afford to have a default.”
READ MORE: https://thehill.com/homenews/senate/453422-white-house-congress-inch-toward-debt-budget-deal