GOP Senate has enough votes to stop Debt Ceiling Bill.

Republican Senators Demand Spending Cuts in Debt Ceiling Negotiations

A group of 43 Republican senators have sent a letter to Democratic Senate Majority Leader Chuck Schumer, stating their opposition to voting on a bill that only raises the U.S. debt ceiling without addressing other priorities. Led by Senator Mike Lee and including Minority Leader Mitch McConnell, the Republicans argue that “substantive spending and budget reforms” must be a starting point for negotiations, citing an economy “in free fall.”

While several moderates, including Senators Mitt Romney and Lisa Murkowski, did not sign the letter, the latest Senate Republican letter shows the party could block a so-called “clean” debt ceiling bill. With only a 51-49 majority in the Senate, Schumer would need the support of at least nine Republicans to clear a 60-vote threshold to advance such legislation.

The Consequences of Inaction

The political standoff over the debt ceiling has raised concerns over a default that could reverberate across global financial markets. U.S. Treasury Secretary Janet Yellen warned in a recent letter to Congress that the agency may be unable to meet all of its debt obligations as soon as June 1 if the debt ceiling is not raised.

U.S. President Joe Biden, a Democrat, has criticized Republicans for threatening not to raise the debt limit unless Democrats agree to steep budget cuts. Biden will meet with four top congressional leaders on Tuesday to discuss spending priorities, according to the White House.

The House’s Solution

The House passed a bill in late April to raise the government’s $31.4 trillion debt ceiling that includes sweeping spending cuts over the next decade. However, that measure is not expected to pass in the Senate and would be vetoed by Biden if it did.

It remains to be seen how negotiations will proceed, but one thing is clear: the consequences of inaction could be dire.

• 43 Republican senators demand spending cuts in debt ceiling negotiations
• Political standoff raises concerns over a default that could reverberate across global financial markets
• U.S. Treasury Secretary warns agency may be unable to meet all of its debt obligations as soon as June 1 if the debt ceiling is not raised
• House passed a bill to raise the government’s debt ceiling that includes sweeping spending cuts over the next decade, but it is not expected to pass in the Senate and would be vetoed by Biden if it did