XPost: alt.politics.trump, alt.politics.libertarian, talk.politics.guns   
   XPost: sac.politics, alt.society.liberalism   
   From: blunder-biden@crooks.rus   
      
   A debate over the debt ceiling is at the center of a dispute over funding   
   that is pushing Washington to the brink of a federal government shutdown.   
      
   President-elect Donald Trump has demanded that a provision raising or   
   suspending the nation’s debt limit — something that his own party   
   routinely resists — be included in legislation to avert a government   
   shutdown. “Anything else is a betrayal of our country,” Trump said in a   
   statement Wednesday.   
      
   Republicans quickly complied, including a provision in a revamped   
   government funding proposal that would suspend the debt ceiling for two   
   years, until Jan. 30, 2027. But the bill failed overwhelmingly in a House   
   vote Thursday evening, leaving next steps uncertain.   
      
   Here’s what to know about the debate over the debt ceiling and the role   
   it’s playing in the shutdown saga:   
      
   What is the debt ceiling?   
   The debt ceiling, or debt limit, is the total amount of money that the   
   United States government can borrow to meet its existing legal   
   obligations. For the Treasury Department to borrow above that amount, the   
   limit must be raised by Congress.   
      
   The federal debt stands at roughly $36 trillion, and the spike in   
   inflation after the coronavirus pandemic has pushed up the government’s   
   borrowing costs such that debt service next year will exceed spending on   
   national security.   
      
   The last time lawmakers raised the debt limit was June 2023. Rather than   
   raise the limit by a dollar amount, lawmakers suspended the debt limit   
   through Jan. 1, 2025. At that point, the limit will be automatically   
   raised to match the amount of debt that has been issued by the Treasury   
   Department.   
      
   The debt limit vote in recent times has been used as a political leverage   
   point, a must-pass bill that can be loaded up with other priorities.   
      
   What is the debt ceiling fight all about?   
   Trump has tied a demand for dealing with the debt ceiling to the dispute   
   over government funding, saying one should not be addressed without the   
   other.   
      
   When he rejected the spending proposal on Wednesday, Trump said that he   
   wanted the debt ceiling debate settled before he takes office next month.   
      
   Warning of trouble ahead for Johnson and Republicans in Congress, Trump   
   told Fox News Digital, “Anybody that supports a bill that doesn’t take   
   care of the Democrat quicksand known as the debt ceiling should be   
   primaried and disposed of as quickly as possible.”   
      
   What happens if the debt ceiling isn’t raised?   
   There’s actually no need to raise the debt limit right now. On Jan. 1,   
   when the debt limit is triggered, the Treasury Department can begin using   
   what it calls “extraordinary measures” to ensure that America doesn’t   
   default on its debts.   
      
   Some estimate these accounting maneuvers could push the default deadline   
   to the summer of 2025 — but that’s exactly what Trump wants to avoid,   
   since an increase would then be needed while he is president.   
      
   Lawmakers have always raised the debt ceiling in time because the   
   consequences of failure are stark. Without action, the government would go   
   into default on its debts, a first-ever situation that Treasury Secretary   
   Janet Yellen and economic experts have said could be “catastrophic” for   
   the economy and global markets.   
      
   Raising or suspending the debt limit does not authorize new spending or   
   tax cuts; it merely acknowledges past budgetary decisions — that is,   
   current budget law — and so allows the federal government to meet its   
   existing legal obligations. For that reason and others, some have   
   advocated doing away with the limit altogether.   
      
   What could the debt ceiling fight mean for Speaker Mike Johnson?   
   Dealing with the debt ceiling could have ramifications for Johnson, as he   
   angles to keep his job in the new Congress that begins on Jan. 3.   
      
   Trump said early Thursday that Johnson will “easily remain speaker” for   
   the next Congress if he “acts decisively and tough” in coming up with a   
   new plan to also increase the debt limit, a stunning request just before   
   the Christmas holidays that has put the beleaguered speaker in a bind.   
      
   The last House speaker, Kevin McCarthy, worked for months with President   
   Joe Biden to raise the debt limit. Even though they struck a bipartisan   
   deal that cut spending in exchange for additional borrowing capacity,   
   House Republicans said it didn’t go far enough, and it ended up costing   
   McCarthy his job.   
      
   Now, Trump is looking for Johnson to pass a debt ceiling extension just   
   hours before a partial government shutdown.   
      
   What are Democrats saying about the debt ceiling debate?   
   After meeting with his caucus, Democratic Leader Hakeem Jeffries rejected   
   any possibility that his members would bail out Republicans as the   
   shutdown threat looms.   
      
   “GOP extremists want House Democrats to raise the debt ceiling so that   
   House Republicans can lower the amount of your Social Security check,”   
   Jeffries posted Thursday on social media. “Hard pass.”   
      
   Jeffries and other Democrats say Republicans should honor the spending   
   agreement that was negotiated before Trump got involved. He called the new   
   GOP plan “laughable.”   
      
   https://apnews.com/article/debt-ceiling-shutdown-explainer-   
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