Biden says Republican stonewalling on debt ceiling risks U.S. default

WASHINGTON, Oct 4 (Reuters) – President Joe Biden said on Monday the federal government could breach its $28.4 trillion debt limit in a historic default unless Republicans join Democrats in voting to raise it in the two next weeks.

Senate Republicans, led by Minority Leader Mitch McConnell, have twice in recent weeks blocked action to raise the debt ceiling, saying they do want action but will not help by voting for the move. Republicans say Democrats can use a parliamentary maneuver known as budget reconciliation to act alone. Top Democrats have rejected that approach. read more

“Raising the debt limit comes down to paying what we already owe … not anything new,” Biden said at a White House news conference.

Asked if he could guarantee the United States won’t breach the debt limit, the president answered: “No, I can’t. That’s up to Mitch McConnell.” He said he intended to speak with McConnell about the matter.

McConnell for months has said that Democrats should use the budget reconciliation process to get around the Senate’s filibuster rule, which requires 60 of 100 members to agree to pass most legislation. Senate Majority Leader Chuck Schumer, a Democrat, has refused to use that approach, and Biden on Monday pleaded for Republicans not to block action with the filibuster.

“Just get out of the way,” Biden told Republicans. “If you don’t want to help save the country, get out of the way so you don’t destroy it.”

But Senator Joe Manchin, a moderate Democrat who has been at odds with many in his party on other major issues, said Democratic leaders should not rule out using budget reconciliation to raise the debt ceiling.

“Well they shouldn’t rule out anything – we just can’t let the debt ceiling lapse,” Manchin said, according to CNN reporter Manu Raju, who tweeted the senator’s comments.

‘PREVENTABLE CRISIS,’ MCCONNELL SAYS

Calling default a “preventable crisis,” McConnell remained adamant. “Democrats need to tackle the debt limit,” he said on the Senate floor.

In an open letter to Biden, McConnell reiterated that Democrats do not need Republican cooperation to pass a bill to raise the debt ceiling. Democrats have known the Republican position for three months, McConnell wrote.

Late last month the U.S. House of Representatives passed and sent to the Senate a bill to suspend the limit on Treasury borrowing through the end of 2022.

Schumer on Monday filed a cloture motion, which ends debate, on a measure that would allow for extension of the debt limit. The Senate is likely to vote on it later this week, the third time Schumer has brought the issue to a vote.

Treasury Secretary Janet Yellen last week warned lawmakers that the United States government would exhaust its federal borrowing capabilities by about Oct. 18.

Failure to act could have catastrophic economic consequences….