The bipartisan bargain to raise America’s debt ceiling faces an arguably riskier trial now that it has cleared the Republican-controlled House.
That’s because just one senator in the Democratic-run chamber has the power to thwart the plan hatched by President Joe Biden and Speaker Kevin McCarthy ahead of the June 5 default deadline.
Even a small procedural motion could delay the deal’s passage, which the White House and congressional leaders warn could put financial markets and average Americans at risk.
“A default would trigger a recession, cost millions of jobs, and devastate retirement accounts,” the White House Twitter account blared out Wednesday.
Senate Majority Leader Chuck Schumer, of New York, warned members during a floor speech Wednesday there is no time for funny business.
“I cannot stress enough that we have no margin, no margin, for error: either we proceed quickly and send this bipartisan agreement to the president’s desk, or the federal government will default for the first time ever,” he said.
But there are senators on both sides of the aisle who have taken issue with parts of the Biden-McCarthy deal who will want to flex their influence even as the country tiptoes to an unprecedented financial cliff.
Senate Minority Leader Mitch McConnell, of Kentucky, tried to give Republican members cover when he praised the plan as the first step in bringing “Democrats’ reckless spending to heel.”
Just as Biden and McCarthy had to make concessions that upset the more outspoken parts of their political base to make a pact, the two Senate leaders will have to cooperate in order to push the agreement to its finish line.
Here are the main takeaways from the Senate side of the debt debate.
No time for amendments
Whatever reservations senators might have about the Biden-McCarthy deal there’s no time for them to change the proposal and send it back to the House.
Schumer made that clear Wednesday when he said the consequences of slipping past the June 5 deadline would be “catastrophic nightmare” for the global economy and millions of U.S. families.
“So any needless delay, any last-minute brinksmanship at this point would be an unacceptable risk,” he said. “Moving quickly, working together to avoid default is the responsible and necessary thing to do.”
What’s expected is the Senate leaders will devise a way to minimize debate and carve out space for amendment votes that they know will fail, but will let out some member’s steam.
Schumer emphasized how Democrats and Republicans didn’t get everything they wanted. He also appealed to progressives senators by echoing the Biden administration’s point that this could have been a lot worse.
“But this agreement still accomplishes two major goals: it spares the American people from the catastrophe of default and it preserves the most important investments we’ve passed over the past few years, many of them on a bipartisan basis,” he said.
Elizabeth Warren: Republicans ‘take hostages’ but should Dems?
That might not be enough to please liberal lawmakers and their allies who have have been furious about negotiations.
Some appeared to suggest that Democrats should mimic those hardball tactics.
“We shouldn’t be in this position,” Sen. Elizabeth Warren, of Massachusetts, told reporters on Wednesday. “The problem we’ve got is that the Republicans are willing to take hostages and the Democrats are not.”
Warren, who hasn’t said how she’ll vote, ripped many of the provisions in the deal, such as the work requirements for government aid. Going into the debate she has called attention to how the House GOP is demanding the U.S. “pinch pennies” on welfare programs, but will pivot to extend the Trump-era tax cuts in the coming weeks.
“This is not fiscal responsibility,” she said. “It’s cruelty.”
Sen. Tim Kaine, of Virginia, vowed to file an amendment to ditch approval of the Mountain Valley Pipeline, a natural gas project, which he has fought against for months.
But other Democrats might be inclined to move on and are voicing a more conciliatory tone, such as Sen. Cory Booker, of New Jersey, who sent a cryptic video message amid the debt ceiling clash, saying how “every disagreement doesn’t necessitate a debate.”
What will Rand Paul and other conservatives do?
Similar to the right-wing rebellion in the House, McConnell isn’t going to get a break from fiscal hawks who feel the debt deal isn’t satisfactory.
Republican Sen. Rand Paul, of Kentucky, blasted the plan as being backed by “fake conservatives” within hours of it being announced last weekend. He has a history of leveraging important deadlines to make a point, and has telegraphed that he plans to seek a vote on an alternative debt ceiling plan that would make billions in additional cuts.
“There’s nothing conservative about a debt deal that grants unlimited borrowing for two years that experts estimate will likely exceed $4 trillion,” Paul said in a May 31 tweet.
“I will insist on an amendment vote to enact real spending caps that lead to a balanced budget in 5 years!”
Paul has acknowledged that his proposal doesn’t have the necessary 50 votes, but he isn’t the only GOP senator who could cause headaches. Others conservative senators have objections too, such as Mike Lee of Utah and Lindsey Graham of South Carolina, who wants more money for defense spending.
This stands in contrast to McConnell and his leadership team, who like Schumer on the Democratic side, endorsed the deal and has tried to sell their members on what it will achieve.
“Republicans stood united. They forced President Biden to do his job,” McConnell said Wednesday on the Senate floor. “And they reached an agreement that preserves the full faith and credit of the United States and starts getting its financial house in order.”
McConnell stressed how Republicans have “put a dent in” the Democrats’ agenda in a plan that reduces spending by more than a trillion dollars.
“House Republicans’ unity gave them the upper hand. And they used it to secure a much-needed step in the right direction,” he said. “When this agreement reaches the Senate, I’ll be proud to support it without delay.”
