Senate GOP blocks loan bill to avoid government shutdown

Republican senators on Monday blocked a bill to keep the government in business and allow federal borrowing, but Democrats aimed at avoiding a shutdown are likely to try again – while continuing President Joe Biden’s grand plans to reshape the government .

The efforts aren’t necessarily linked, but the year-end deadline for funding the government last Thursday clashes with Democrats’ desire to move forward on Biden’s vast $ 3.5 trillion federal overhaul.

All of this creates a tumultuous moment for Biden and his party, with consequences that will certainly shape his presidency and the political future of lawmakers.

RELATED: Pelosi plans to vote on a $ 1T infrastructure bill on Thursday

Success would mean a historic accomplishment, if Democrats can push through Biden’s big bill. Failure – or a highly unlikely government shutdown and debt crisis – could derail careers.

“You know me, I’m a born optimist,” Biden told reporters on Monday, as he rolled up his sleeve for a COVID-19 recall. “We are going to do it.”

In Monday night’s vote, senators voted 50-48 against passing the bill, well short of the 60 “yes” votes needed to proceed. Democratic Majority Leader Chuck Schumer changed his “yes” to “no” at the end to allow Democrats to reconsider the bill later.

In a few days, Democrats are likely to try again before Thursday’s deadline to pass a bill funding government operations after fiscal year-end September 30, setting aside the debt limit debate for another day. , closer to a separate deadline in October.

Meanwhile, the real action takes place behind the scenes on the $ 3.5 trillion measure, as Biden and his Democratic allies in Congress seek to rework the country’s balance sheets once in a generation.

From preschool fees and child care subsidies for families with young children to dental care and hearing aids for seniors with Medicare, there’s a lot in the president’s proposal – it all has to be paid for. with higher taxes on corporations and the wealthy.

RELATED: House Dems Unveils Tax Hikes For Businesses And The Rich To Fund $ 3.5 Billion Spending Plan

With Republicans firmly opposed, Democrats are rushing to reduce the total and gain resistance within their own party.

Building on a separate $ 1,000 billion bipartisan public works program that has already been approved by the Senate and is headed for a House vote, Biden is seeking significant spending on health care, education and efforts to combat climate change. The total price, he argues, is in fact “zero” – covered by the expected increase in tax revenue.

He personally calls on his fellow Democrats in Congress to strive to resolve differences and advance his overall vision of domestic politics.

Ticking off the hefty list of goals to accomplish, Biden said, “If we do this, the country will be in great shape.”

But Republicans say these are real expenses that cannot be paid for and reflect Democrats’ willingness to put government into people’s lives.

And so far the bill is also too important for the main Democrats whose votes are needed in the face of GOP opposition. Two recalcitrant Democrats, the senses Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, have said they will not support a bill of this size. Manchin has already proposed spending of $ 1,000 billion to $ 1,500 billion.

RELATED: Biden’s infrastructure program moves forward as House passes $ 3.5 trillion budget

With all Republicans opposed, Democratic leaders cannot spare a single vote in the Senate at 50-50, relying on Vice President Kamala Harris to break the tie and pass the eventual package.

All of this, as other deadlines swirl this week to pay for government operations and authorize more borrowing or risk a devastating federal shutdown or debt default – though these dire scenarios seem unlikely.

The bill that Senate Republicans voted down Monday night would have temporarily funded government operations, until early December, while providing emergency funds for Hurricane Ida and other disaster relief and for Afghan refugees in the aftermath of the 20 Years War.

Republican leader Mitch McConnell rejected this approach because Democrats also included a provision to suspend the debt limit, which would allow borrowing to continue to pay the country’s bills.

Once a routine affair, raising the debt ceiling is now a political weapon of choice used by Republicans to attack Democrats – even though both sides have been responsible for the accumulation of debt.

“Democrats will do the responsible thing – the right thing, the thing that has been done for decades by both parties – and vote yes,” Majority Leader Schumer said ahead of the vote.

Schumer called the Republican opposition “unbalanced”.

McConnell has said he wants to fund the government and prevent a devastating default, but wants to force Democrats to split the package in half and vote alone on the politically uncomfortable debt ceiling.

RELATED: Sinema Shatters House Dems Hopes With $ 3.5 Million Infrastructure Bill

“Republicans are not in favor of closing or going over the debt limit,” he said.

Thursday is a new deadline of sorts, and Biden, House Speaker Nancy Pelosi and Schumer have gained some breathing space after Pelosi postponed Monday’s scheduled vote on the public works bill to Thursday, which is also the expiration date of the transportation programs in the Public Works Bill.

As Pelosi met privately with House Democrats on Monday, the most difficult action now lies in the Senate, as Democrats are under pressure to garner votes for the Biden package.

Pelosi said on Sunday it seemed “obvious” the price would drop to address concerns of remaining lawmakers.

His comments reflected the huge stakes for the coming week, which could define the Biden presidency and shape the political contours of next year’s midterm elections.

Democrats have only a few votes to spare on the massive House for Biden agenda. Some Republican senators backed the $ 1,000 billion public works bill, but now House Republicans are opposing it, saying it’s too much.

While progressives say they’ve compromised enough on Biden’s big bill already, having come down from a bill they initially envisioned to $ 6 trillion, some are also acknowledging the more potential changes.

Biden’s proposal is to be funded by increasing the corporate tax rate from 21% to 26.5% for companies making more than $ 5 million a year, and increasing the top rate for individuals by 37% at 39.6% for those earning more than $ 400,000 per year. year, or $ 450,000 for couples.

While Democrats largely agree on Biden’s vision – many have campaigned on the party’s long-standing priorities – stubborn differences remain. Among them are divergences on which initiatives should be revamped, including how to promote cleaner energy or reduce prescription drug costs.

Associated Press editors Hope Yen and Alan Fram contributed to this report.

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