“Republicans raised the debt ceiling with minimal drama under Donald Trump. Now Democrats are prepared to make them publicly refuse to do the same for Joe Biden.
Senate Republicans are digging in deeper and deeper in their resistance to raising the nation’s borrowing limit, with 46 of them vowing to oppose an increase this fall that will need at least 10 Republican votes. Yet Democrats still plan to burn their most expedient ticket out of the debt mess, with no intention to shift course and pass an increase along party lines.
Their move to pass a budget resolution without tackling the debt ceiling, completed last week, adds a perilous deadline to Democrats’ season full of lofty promises on infrastructure and social spending. It’s not only the majority party facing a fall challenge, however: Republicans will have to actually block a debt ceiling increase instead of just talking about it.
The borrowing fight is perhaps the most immediately consequential drama during a momentous fall for Biden and the Democratic agenda. In addition to raising the debt ceiling, Democrats must fund the government past Sept. 30, devise a likely multitrillion-dollar spending bill and put Biden’s infrastructure bill over the top in the House. Democrats will also make one last-gasp effort at passing voting rights legislation.”
“The Congressional Budget Office (CBO), the legislature’s nonpartisan number-crunching agency, says the bipartisan infrastructure bill would add about $256 billion to the deficit over 10 years. The real figure is likely to be higher, because the package contains a few gimmicky elements that are designed to trick the CBO’s forecasting metrics.
The biggest of those gimmicks is the promise that Congress will reallocate more than $200 billion of COVID relief funds to cover infrastructure costs. It remains unclear exactly what unused COVID funds will be redirected, and the bill only rescinds $50 billion in actual budget authority from previously passed COVID relief bills, according to an analysis by the Committee for a Responsible Federal Budget (CRFB).
Other proposals to save and redirect federal dollars to pay for the infrastructure bill are also unlikely to materialize. Take the $49 billion lawmakers plan to “save” by further delaying an already-delayed Trump administration regulation altering how prescription drug discounts are applied by health insurers. “Because the Congressional Budget Office projected that the so-called rebate rule would increase federal spending in Medicare and Medicaid by about $177 billion over a decade, due to a rise in Medicare premiums (and therefore, taxpayer-funded subsidies for Medicare premiums), lawmakers get to count a further delay in the rule (beyond the Biden administration’s one-year delay) as ‘savings’ for the federal government,” explains the National Taxpayers Union.”
“When you filter out the gimmicks designed to game the CBO score of the infrastructure bill, the CRFB says the package will probably add $340 billion to the deficit over 10 years.”
“But as the CBO’s report makes clear, actually paying for the infrastructure makes those benefits bigger than they otherwise would be. A fully offset infrastructure package would boost GDP by an estimated 0.11 percent over the next 30 years while a deficit-financed package would barely break even. That’s because, as the CRFB notes, running higher deficits to pay for infrastructure spending will reduce private investment over the long term and, thus, lower future economic growth as well.”
“But the FDR and LBJ examples show conclusively why visions of a transformational Biden agenda are so hard to turn into reality. In 1933, FDR had won a huge popular and electoral landslide, after which he had a three-to-one Democratic majority in the House and a 59-vote majority in the Senate. Similarly, LBJ in 1964 had won a massive popular and electoral vote landslide, along with a Senate with 69 Democrats and a House with 295. Last November, on the other hand, only 42,000 votes in three key states kept Trump from winning re-election. Democrats’ losses in the House whittled their margin down to mid-single digits. The Senate is 50-50.
Further, both Roosevelt and Johnson had crucial Republican allies. In the 1930’s, GOP Senators Robert LaFollette and Frank Norris were ardent advocates for organized labor. In the ‘60s, Senate Minority Leader Everett Dirksen gave LBJ crucial help in getting his civil rights agenda passed. When Medicare became law in 1965, it passed with 70 Republican votes in the House and 13 GOP votes in the Senate. In today’s Washington, Kevin McCarthy and Mitch McConnell have been successfully working to keep Republican support for Biden’ policies at precisely zero.”
“The threats to a free and fair election that have emerged since last November are real—and require nothing more than the willingness of state legislators to use and abuse the existing tools of government. Arizona, whose two new voting rules were just validated by the Supreme Court, also took the power to litigate election laws away from the (Democratic) Secretary of State and gave the power to the (Republican) Attorney General. In at least 8 states, Republicans are advancing legislation that would take power away from local or county boards. Many more states are moving to make voting harder. It might be anti-democratic, but it falls well within the rules.
Also within the rules: How McConnell helped build a federal bench almost certain to ratify the power of those legislatures to pass laws far more restrictive than the Arizona rules upheld last week. He creatively eviscerated Senate norms to keep Merrick Garland off the Supreme Court and hand Donald Trump an astonishing three nominations in a single term. And he’s recently suggested that, should a Supreme Court vacancy open, he’d block even consideration of a Biden nominee if the Republicans take the Senate back in 2022. This is abnormal, anti-democratic and a cynical abuse of power—but it’s legal within the existing rules.”
“Biden’s statements on the legislation were crucial to advancing it. When the president met with lawmakers in June, he pledged that he wouldn’t push to include any physical infrastructure funding in Democrats’ reconciliation bill that wasn’t included in the bipartisan one.
As Politico’s Burgess Everett and Marianne LeVine reported, that position helped assuage some of the Republican senators’ concerns that Democrats would agree to whatever cuts were needed to gain GOP support before later passing everything that was cut using the reconciliation process, which requires only a Senate majority. Taking Biden at his word that what was cut from the bill was gone forever allowed many Republicans to give the bipartisan bill their support, according to Sen. Mitt Romney (R-UT).”
“Yet what happened this spring in Oregon is just one example, though perhaps the most extreme one, of a larger trend vexing Democratic strategists and lawmakers focused on maximizing the party’s gains in redistricting. In key states over the past decade, Democrats have gained control of state legislatures and governorships that have long been in charge of drawing new maps — only to cede that authority, often to independent commissions tasked with drawing political boundaries free of partisan interference.
Supporters of these initiatives say it’s good governance to bar politicians from drawing districts for themselves and their party. But exasperated Democrats counter that it has left them hamstrung in the battle to hold the House, by diluting or negating their ability to gerrymander in the way Republicans plan to do in many red states. And with the House so closely divided, Democrats will need every last advantage to cling to their majority in 2022.”
“Since predominantly Black districts are among the safest Democratic seats in the nation, those that become vacant in Republican-governed states tend to stay open longer than any other vacant seats. Indeed, four of the 10 longest House vacancies since 1997 have been in predominantly Black districts”
“In the House, Speaker Nancy Pelosi said she would link the two bills together, to prevent the party’s left from losing heart. “There ain’t going to be an infrastructure bill unless we have the reconciliation bill passed by the United States Senate,” Pelosi said Thursday.
This is an attempt to put the moderate Democrats in a box. It’s a promise from Pelosi to hold their cherished bipartisan deal hostage unless they fall in line with Biden’s reconciliation plan. It’s not clear whether this was necessary, since Manchin had already started speaking positively about the reconciliation effort. It also may be a bluff — if the reconciliation effort does fall apart, would Pelosi and House Democrats really choose doing nothing over settling for whatever got through the Senate? But Democrats hope the moderates will simply fall in line, so they don’t have to find out.”
“So far, Democrats and Republicans have made some headway on the bipartisan deal. They have agreed to a very vague framework that includes funding for roads and bridges, public transit, passenger and freight rail, electric vehicle infrastructure, clean drinking water, and broadband internet, among a few other areas. The agreement goes into almost no detail beyond those broad categories — with lawmakers now working to get more specific as they transform that framework into actual legislation.
Where both sides haven’t reached any agreement yet is how all of this will be paid for. Democrats want to pay for it largely by undoing parts of former President Donald Trump’s tax law, while Republicans suggested raising the gas tax and electric vehicle charging fees. With both sides rejecting each other’s ideas, they instead put out a list of potential revenue sources, ranging from stronger enforcement of current tax laws to spending caps to public-private partnerships. But the sides haven’t reached any concrete agreements here, and all of these ideas may not even be enough to fund the full bill.
Democrats have also promised to pass an additional infrastructure bill through reconciliation (to bypass the filibuster on a party-line vote). This bill would aim to fill in the other parts of Biden’s agenda left out of the bipartisan deal, including broader action on climate change and “human infrastructure” measures like an expanded child tax credit and elder care.
But the party hasn’t come to an agreement on this measure. Manchin suggested the bill could be as little as $2 trillion, while Sanders has worked on a $6 trillion proposal. There is, suffice to say, a very wide space in between.
In short: A lot is up in the air. The specific details are still being worked out. It’s not clear if any of this will happen.”
“America still has the highest uninsured rate in the developed world and the highest health care costs. So long as the health care industry wields a veto pen over any plan that would cut into its profits to address those problems, little is going to change.”