House GOP discussing short-term increase in debt ceiling
January 17th, 2013
05:25 PM ET
1 year ago

House GOP discussing short-term increase in debt ceiling

Williamsburg, Virginia (CNN) – House Republican leaders are talking to rank and file GOP members about passing a short-term extension of the debt ceiling, perhaps one that just authorized the nation's borrowing authority for a couple of months.

House Budget Committee Chairman Paul Ryan, R-Wisconsin, told reporters it was one option in a morning discussion with all House Republicans about legislative strategy for the first few months of the new Congress.

"We're discussing the possible virtue of a short term debt limit extension so that we have a better chance of getting the Senate and the White House involved in discussions in March," Ryan said.

President Barack Obama, however, has closed the door to negotiating over the debt ceiling, saying "America cannot afford another debate with this Congress about whether or not they should pay the bills they’ve already racked up."

"They’re going to have to send me something that’s sensible. And we shouldn’t be doing this ... on a one to three-month timeframe," Obama said at a news conference on Monday. "Why would we do that? This is the United States of America. ... What, we can’t manage our affairs in such a way that we pay our bills and we provide some certainty in terms of how we pay our bills?"

The necessity of raising the debt ceiling comes shortly after the fiscal cliff, which found Republicans and Democrats at stalemate for weeks over averting tax increases and spending cuts which they had designed to trigger if they could not reach a deal.

"I’m not going to have a monthly or every-three-months conversation about whether or not we pay our bills," Obama said. "Because that in and of itself does severe damage. Even the threat of default hurts our economy. It’s hurting our economy as we speak. We shouldn’t be having that debate."

Republican Rep. John Fleming, R-Louisiana, said the idea came out of an ad hoc group led by Ryan, and House Speaker John Boehner signaled he supported the approach.

At one of the closed door sessions at a resort in Williamsburg, rank and file members viewed a slide show that highlighted how one of the last major deficit reduction packages – known as Gramm-Rudman – was preceded by a series of short term extensions in the debt ceiling.

Fleming said members will wait to see all the details, but said many conservatives backed it.

"I think we're all pretty much on board," Fleming said, and noted that impetus behind it was to keep the pressure on for reaching a broader deal to cut spending.

The strategy was a departure from recent discussions where Republicans pushed that any increase in the debt limit must include spending cuts that amounted to the same size of the increase. It's unclear what kind of spending cuts leaders might want to include.

Some conservatives are pressing GOP leaders to attach items to force the Democratic-led Senate to act. One option discussed was to require the Senate to pass a budget, another was to require that the Senate approve or simply vote on a Constitutional amendment to balance the budget.

Rep. Steve Scalise, who heads the group of fiscal conservatives in the House known as the Republican Study Committee, says he wants to include a condition to any increase in the nation's borrowing authority that the Senate pass a budget—something it hasn't done in four years. The Louisiana Republican said GOP members are suggesting the extension go through mid April.

"I think the debt limit is a symptom of the spending problem," Scalise told CNN, and added no longer term extension is warranted until there is a complete picture of what the spending priorities are.

Just weeks after Congress passed a deal to avert the fiscal cliff at the end of 2012, lawmakers are heading into a series of contentious debates over the debt ceiling, the automatic spending cuts about to kick in across government agencies (or "sequester") and legislation to avoid a possible government shutdown at the end of March.

Ryan said a main purpose of the House GOP retreat was to walk members through the "sequence" of all three things and the numbers involved for rank and file members, especially the freshmen who haven't been through a vote on major budget issues before.

The Wisconsin Republican wouldn't get into any specifics on what kind of cuts the GOP might propose to accompany a short term extension. But he stressed that ultimately both parties needed to come together on major deficit reduction package this year.

"We believe it that it would be wrong if we walk out of this spring with no achievement on debt reduction whatsoever, because that will hurt the country, that will hurt the economy and that's why we believe we have to have serious plan for tackling these things," Ryan said.

Fleming said he believed President Obama may be willing to support a short term increase in the debt limit so he could move onto other legislative priorities he wants to press, such as new restrictions on guns. But he noted there was "zero" discussion of the gun issue at the retreat, and the focus was narrowly on the immediate fiscal battles ahead.

Ryan didn't directly answer questions about whether there was a widespread willingness among a majority of House Republicans to default on the nation's obligations if they can't reach some kind of deal on the debt limit.

Asked if the GOP was willing to "shoot the hostage" as some conservatives have suggested – in negotiations with Democrats, Ryan said, “I don't want to use any metaphors such as that at all."

– CNN's Paul Courson contributed to this report.


Filed under: Congress • Debt • Deficit • House • Virginia
soundoff (35 Responses)
  1. luvUamerica

    I wonder in the meantime, all of us can get together and start a recall of all these Tea Party extremists?

    January 17, 2013 08:22 pm at 8:22 pm |
  2. TomNPitt

    I say we make an economics plan that goes into effect four years from now. That would include major reductions in spending and a balanced budget with penalties for the President if he can't make that happen. In that way, we would have four years to wash out a lot of the crap we are still trying to flush from the current and past budgets. This whole thing about the debt ceiling hostage taking would be mute. There's no reason to not pay for the spending we've already spent, in an effort to reduce what we might spend tomorrow. Holding our creditors at gunpoint because we don't want to spend more tomorrow is just silly. Let's put it off for the next administration and let the economy grow today. Quit trying to retard everyone's growth just because you still don't want this president to have a positive place in history. Worry and plan for tomorrow – quit screwin' with today!!

    January 17, 2013 08:41 pm at 8:41 pm |
  3. Jt_flyer

    Just be sure social security is the first to stut down. The will effect the prehistoric tea party dynosours the most.

    January 17, 2013 08:41 pm at 8:41 pm |
  4. rep

    every time a bill for spending is passed, it should be implicit that the debt ceiling will be raised to cover it. the two should be liked. if the GOP doesn't want to pony up the cash when the bill comes due, they should NEVER pass any bill that requires spending. NONE. But that's not what happens. Both parties routinely decide to run up the charge card and this is just the part where we authorize payment. There are plenty of other opportunities (coming up soon) to bargain for cuts; it makes no sense to strap a bomb around their chests over this one.

    January 17, 2013 08:45 pm at 8:45 pm |
  5. Kurt

    Honestly, I sort of wish they'd stop ruining the future by continually raising the debt ceiling. I mean, they're still borrowing everything they spend! Knock it off! I'm 24, and don't want to deal with their mess forever. Politicians...

    January 17, 2013 08:47 pm at 8:47 pm |
  6. joamerican

    I predict happiness for the people if they can prevent the govt from wasting the labor of the people under the pretense of taking care of them." Thomas Jefferson.

    January 17, 2013 08:50 pm at 8:50 pm |
  7. deemic

    Personally grateful that CNN didn't put a picture of that stupid, glum looking face that Ryan typically wears when mugging for the camera, on the front page of this article.

    January 17, 2013 08:59 pm at 8:59 pm |
  8. Bill

    If you don't want a debate on whether to increase the debt ceiling, cut spending and balance your budget. Don't ask for trillions of new stimulus dollars.

    It really is that simple Obama.

    January 17, 2013 09:02 pm at 9:02 pm |
  9. Dave

    Here we go AGAIN!!!! The GOP are determined to lead themselves into oblivion. The Tea Party, Grover Norquist, the NRA, the Fundamentalists and others will all contribute to the Democrats retaking the House Of Representatives in 2014. Ryan clearly learned NOTHING from his dramatic defeat in the Presidential election.

    January 17, 2013 09:07 pm at 9:07 pm |
  10. Yonni

    Ryan, if this is true you? you cannot even manage a grocery store month to month not a US government

    January 17, 2013 09:10 pm at 9:10 pm |
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