Congress foresees short-term debt limit fix amid perilous standoff

Republican and Democratic leaders edged back Wednesday from a perilous standoff over lifting the nation’s borrowing cap, with Democratic senators signaling they were receptive to an offer from Senate GOP leader Mitch McConnell that would allow an emergency extension into December.

McConnell made the offer as Republicans were poised to block legislation to suspend the debt limit until December of next year, and as President Biden and business leaders ramped up their concerns that an unprecedented federal default would disrupt government payments to millions of people and throw the nation into a recession.

The emerging agreement sets the stage for a sequel in December, when Congress will again face pressing deadlines to fund the government and raise the debt limit before heading home for the holidays.

A procedural vote on the longer extension the Republicans were going to block was abruptly postponed late Wednesday, and the Senate recessed so lawmakers of both parties could discuss their next steps.

Democrats emerged from their meeting more optimistic that a crisis would be averted.

“I’m glad that Mitch McConnell finally saw the light,” said independent Sen. Bernie Sanders of Vermont, who caucuses with Democrats. The Republicans “have finally done the right thing, and at least we now have another couple months in order to get a permanent solution.”

Sen. Christopher S. Murphy (D-Conn.) added that, assuming final details in the emergency legislation are in order, “for the next three months, we’ll continue to make it clear that we are ready to continue to vote to pay our bills, and Republicans aren’t.”

McConnell portrayed the situation very differently.

“This will moot Democrats’ excuses about the time crunch they created,” he said, “and give the unified Democratic government more than enough time to pass standalone debt limit legislation through reconciliation.”

Congress is up against an Oct. 18 deadline, when the Treasury Department has warned it will quickly run short of funds to handle the nation’s already accrued debt load.

McConnell and Senate Republicans have said Democrats will have to go it alone to raise the debt ceiling and allow the Treasury to renew its borrowing to meet the government’s financial obligations. McConnell has also said Democrats must use the same cumbersome legislative process — reconciliation — that they used to pass a $1.9-trillion COVID-19 relief bill and that they’re employing in efforts to pass Biden’s $3.5-trillion measure to boost social safety net, health and environmental programs.

In his offer Wednesday, McConnell said Republicans would still insist that Democrats use the reconciliation process for a long-term debt limit extension. However, he said that Republicans were willing to “assist in expediting” that process, and that in the meantime Democrats may use the normal legislative process to pass a short-term debt limit extension.

While he continued to blame Democrats, his offer will allow Republicans to avoid the condemnation they would have gotten from some quarters for causing a financial crisis.

Earlier Wednesday, Biden enlisted top business leaders…