GOVERNMENT REGULATIONS FEATURES inside the behtway Article Title by Government Officlal Name W
ith a slight majority, the new leadership in the House of Representatives got off to a slower than expected start in January and began tackling important issues
in February. The first main event of the year continues to be a showdown on the debt ceiling. The showdown this year is between the House of Representatives and the White House. The debt ceiling debate has roots in the Constitution, which grants Congress the power to borrow money on the credit of the United States — one part of Congress’ power of the purse — and thus mandates congressional control over federal debt. Control of debt policy has at times provided Congress with a means of voicing concerns about fiscal policies. Debates over federal fiscal policy have been especially animated in the past decade, in part because of the accumulation of federal debt in the wake of the 2007-2008 financial crisis and subsequent Great Recession, as well as debt accumulated due to responses to the COVID-19 pandemic starting in March 2020. Rising debt levels, along with continued differences in fiscal policy views, led to a series of contentious debt limit episodes in recent years. Dysfunction around the budget process in Washington is not uncommon. While the debt ceiling is certainly front and center, the conversation over that limit is inextricably tied to the annual budget. Many GOP Members want to reform an- nual spending habits as part of the deal to address the debt. However, the White House has indicated that the President’s budget will not be released for at least a month after its due date. This announcement marks the third consecutive year that the Biden Administration has delayed that release, which typically and officially marks the beginning of the Congressional budget process and budget season. Every time the White House or Congress miss these im- portant deadlines, it becomes more and more likely that policymakers are doomed to fail to abide by regular order and instead just kick the can down the road, waiting until the last possible second to prevent a shutdown or pass a massive omnibus spending measure. Many fear that this sentiment pervades Washington and the same will be true of addressing the debt ceiling debate this year. At the beginning of every Congressional term, we often hear the phrase that we “plan to get back to regular order” this year. But the truth is that Congress has not passed a budget on time in 20 years. More shocking is the fact that all appropriations bills have not been passed on time in 26 years and only 36 current Members of Congress were in office the last time that happened. While Congress always — ultimately — passes funding measures, a default on the debt, or even a serious threat of
by John Ariale, Husch Blackwell Strategies – OABA’s Government Relations Team Debt Ceiling Debate First Challenge for the New Majority
default, has serious repercussions. As another debt ceiling de- bate looms in Congress, Speaker McCarthy will have to balance the need to address the debt issue while allowing a robust conversation for those in the party who want to attach a debt ceiling increase to strong financial reforms. Speaker McCarthy has stated that he looks forward to discussing a “responsible debt ceiling increase” with President Biden and added the White House should be open to negotiating “how we can put America on a sounder fiscal path by finally addressing irre- sponsible government spending.” However, down Pennsylvania Avenue, the President continues to insist that the White House will not negotiate. The President has suggested that he is open to discussing broader fiscal policies with the new majority in the House; however, when it comes to the debt ceiling, that is not open for interpretation or debate. There is a growing frus- tration amongst those closest to the President that he and con- gressional Dems will be forced to be the “adults in the room” and bend to the will of a narrow House Republican majority. Several House GOP members have issued statements noting that they do not want a default, however, continue to demand cutting tens of billions of dollars in spending that Democrats will ultimately reject. The Speaker has stated that the GOP will not touch Medicare or Social Security; however, Medicaid and other entitlement programs were not mentioned. Of greater interest is the fact that some in the GOP have implied that the Pentagon budget is on the table, at least as far as “waste” is concerned.
In all the conversations back and forth between House lead- ers and the White House, the Senate seems to be satisfied tak- ing a back seat for now in the front-page conversations. Even though the debt ceiling could originate in either the House or the Senate, in this current situation, the debt-ceiling fix — if there is one or how it’s to be dealt with — will have to come out of the House, according to GOP Leader McConnell. Despite that posturing by the Leader, a group of Senators have argued that McConnell should insert himself into the talks if needed, citing his past work with Biden. It should be noted that these are the same GOP senators who have criticized McConnell over the years for, in their view, caving to Democrats when it comes to spending increases.
McHenry Emerges as a Lead Negotiator
A senior House Republican who is both an ally to Speaker McCarthy and a trusted negotiator in the fractured party is emerging as a potential savior in Washington from debt-ceiling economic disaster. Congressman Patrick McHenry stood out as
MARCH 2023 | OABA ShowTime Magazine 17
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