News / USA

US Lawmakers Begin Last-Ditch Effort on Debt Ceiling

Another Day Passes With No US Budget Deali
X
October 16, 2013 1:40 PM
Democratic and Republican leaders in the U.S. Senate have resumed debate on a deal aimed at ending the government shutdown and increasing the government's borrowing authority ahead of Thursday's critical deadline, when the United States would default on some of its debts. Political and economic leaders are warning the ongoing impasse could have a negative impact on the domestic and global economies. Richard Green reports from Washington.

Related video by Richard Green

Reuters
The U.S. Senate prepared for a last ditch effort Wednesday to avoid a historic lapse in the government's borrowing authority, a breach that President Barack Obama has said could lead to default and deliver a damaging blow to the global economy.

After a day of stop-and-go negotiations, the top Democrat and Republican in the U.S. Senate were said to be close to agreeing on a proposal to raise the debt limit - and reopen the partially shuttered government - for consideration by the full Senate on Wednesday. The measure's fate remained uncertain in the fractured Republican-controlled House of Representatives, which failed twice Tuesday to produce its own plan.

FILE - U.S. Representative Chris Van Hollen (D-MD)FILE - U.S. Representative Chris Van Hollen (D-MD)
x
FILE - U.S. Representative Chris Van Hollen (D-MD)
FILE - U.S. Representative Chris Van Hollen (D-MD)
The Senate was scheduled to meet at noon (1600 GMT) on Wednesday, and the House at 10:00 a.m. (1400 GMT). With borrowing authority set to run out on Thursday, Senate Majority Leader Harry Reid and Republican leader Senator Mitch McConnell "are very close" to an agreement, Representative Chris Van Hollen, a top House Democrat, told MSNBC late Tuesday night. "This is now back on track," Democratic Senator Heidi Heitkamp told CNN late on Tuesday, after a day of chaotic developments that frayed the nerves of many members of Congress and global financial markets.

McConnell and Reid resumed stalled talks after a rollercoaster day that saw two separate legislative efforts in the House buried after it became apparent too many Republicans were belling against their leaders' plans. Following weeks of bitter fighting among Democrats and Republicans, the layoff of hundreds of thousands of federal workers and turmoil for stock markets, the deal under discussion- if eventually enacted - would basically give President Barack Obama what he has demanded for months: A straight-forward debt limit hike and government funding bill.

Major US Payments Due

  • Oct. 23 - Social Security benefits $12 billion
  • Oct. 30 - Medicaid payments to providers $2 billion
  • Oct. 31 - Interest payment on public debt $6 billion
  • Nov. 1 - Medicare payment to providers and  plans $18 billion                
  • Social Security benefits $25 billion
  • Military pay, retirement and veteran benefits $12 billion
  • Supplemental Security income benefits $3 billion
  • Nov. 14 - Social Security benefits $12 billion
  • Nov. 15 - Interest payment on debt $29 billion
The deal would extend U.S. borrowing authority until Feb. 7, although the Treasury Department would have tools to temporarily extend its borrowing capacity beyond that date if Congress failed to act early next year. With the final details not yet nailed down, as it stood Tuesday night, the agreement envisioned funding government agencies until Jan. 15, ending a partial government shutdown that began with the new fiscal year on Oct. 1.

Asian stock markets were listless in early trading on Wednesday as they waited to see if Washington was closing in ona deal to resolve the debt crisis. Stocks showed little chang eand remained near a five-month peak.

Senate hurdles

Senate aides said the two leaders are looking at two possible ways of speeding the legislation through the chamber, which often can bog down for days with procedural hurdles.

Senator Dick Durbin, the second-ranking Senate Democrat, told reporters: "In order to move this quickly tomorrow or as soon thereafter as possible, we need cooperation of members. If they want to drag their feet, use every objection they can, this could take a few days."

Senator Ted Cruz is pursued by reporters upon his return to Capitol Hill in Washington, Oct. 11, 2013.Senator Ted Cruz is pursued by reporters upon his return to Capitol Hill in Washington, Oct. 11, 2013.
x
Senator Ted Cruz is pursued by reporters upon his return to Capitol Hill in Washington, Oct. 11, 2013.
Senator Ted Cruz is pursued by reporters upon his return to Capitol Hill in Washington, Oct. 11, 2013.
Under one scenario, all 100 senators would agree to let Democrats schedule quick votes to pass the bill. That would mean that Tea Party firebrands, such as Republican Senator Ted Cruz, would give up their rights to delay a vote. Cruz has not publicly announced his intentions but some Senate aides think that the Texas freshman with presidential aspirations has been sending positive signals in recent days. Cruz and fellow Tea Party activists late last month delayed passage of a government funding bill as they demanded major changes to Obama's landmark healthcare law. The deadlock led to federal agency shutdowns as Obama and his fellow Democrats stood firm against changing the law.

The other scenario would have the House send a formal "message" to the Senate to pave the way for quick Senate action, according to a Senate aide who asked not to be identified. Again, it was not clear whether House Republicans would go along with that option.

Boehner’s tough decision

House Speaker John Boehner, R-Ohio, walks away from the microphone during a news conference after a House GOP meeting, Capitol Hill, Washington, Oct. 15, 2013.House Speaker John Boehner, R-Ohio, walks away from the microphone during a news conference after a House GOP meeting, Capitol Hill, Washington, Oct. 15, 2013.
x
House Speaker John Boehner, R-Ohio, walks away from the microphone during a news conference after a House GOP meeting, Capitol Hill, Washington, Oct. 15, 2013.
House Speaker John Boehner, R-Ohio, walks away from the microphone during a news conference after a House GOP meeting, Capitol Hill, Washington, Oct. 15, 2013.
Assuming the Senate succeeds, House Speaker John Boehner will have to decide whether to allow passage of a bill that many of his fellow Republicans might oppose, a decision that could impact the top Republican's political future.

Uncertainty over Washington's ability to avert a default led Fitch Ratings to warn it could cut the sovereign credit rating of the United States from AAA, citing the political brinkmanship over raising the federal debt ceiling.

House Republicans twice tried to come up with a new compromise but failed to satisfy Obama, Senate Democrats or Tea Party conservatives who are determined to win changes to the president's signature health care law before they will agree to concessions on the budget. The first House Republican attempt was shot down in a closed-door meeting that had begun with members singing the hymn "Amazing Grace."

"The second plan was scuttled hours before it was expected to hit the House floor for a vote after the influential Heritage Action for America, a conservative group, urged a "no" vote because it did not do enough to stop Obama's healthcare law. If Congress fails to reach a deal by Thursday, checks would likely go out on time for a short while for everyone from bond holders to workers who are owed unemployment benefits. But analysts warn that a default on government obligations could quickly follow, potentially causing the U.S. financial sector to freeze up and threatening the global economy.

The U.S. Treasury Department seized on Fitch's downgrade threat to press Congress. "The announcement reflects the urgency with which Congress should act to remove the threat of default hanging over the economy," a Treasury spokesperson said. After the Fitch announcement, S&P 500 futures fell9.6 points while Dow Jones industrial average futures sank 60 points and Nasdaq 100 futures fell 7.5 points.

Numerous polls show Republicans have taken a hit in public opinion since the standoff began and the government partially closed. A Washington Post/ABC News poll released on Monday found that 74 percent of Americans disapprove of the way congressional Republicans have handled the standoff, compared with a 53 percent disapproval rating for Obama. Another survey released by Gallup on Tuesday showed American confidence in the U.S. economy fell another five points last week as the government shutdown continued. The crisis is the latest in a series of budget battles in recent years that have hurt consumer confidence and weighed on the economy.

A Monday estimate by the Peter G. Peterson Foundation, a think tank, said the uncertainty caused by the frequent fiscal showdowns had boosted the unemployment rate by 0.6 of a percentage point, or the equivalent of 900,000 jobs since late 2009.

  • Protesters pile barricades in front of the White House in Washington, Oct. 13, 2013.
  • Police scuffle with protesters taking part in the "Million Vet March on the Memorials" that drew hundreds of demonstators in front of the White House in Washington, Oct. 13, 2013.
  • A man carries an "Impeach Obama" sign while protesting outside the White House in Washington, Oct. 13, 2013.
  • A protester speaks to people gathered at a rally at the World War II Memorial in Washington, Oct. 13, 2013.
  • Senator Ted Cruz, R-Texas, speaks at a rally at the World War II Memorial in Washington, Oct. 13, 2013.
  • Kaylee, Sherry and Michael Cantrell pose for a photo with a sign and removed barricades at the World War II Memorial in Washington, Oct. 13, 2013.
  • People rally at the World War II Memorial in Washington, Oct. 13, 2013.
  • Protesters rally at the National U.S. World War II Memorial in Washington, Oct. 13, 2013.

You May Like

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Role in Fighting IS Carries Domestic Risks

There are Western concerns Islamic State militants soon may unleash offensive in kingdom that could create upheaval - though nation has solid intel, grip on banking system More

Asian-Americans Enter Public Office in Record Numbers

A steady deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

This forum has been closed.
Comment Sorting
Comments
     
by: Ramnarayan from: Florida, USA
October 16, 2013 6:28 AM
As a cancer researcher, I see that lot of out Govt. sites are not functioning. This means valuable discoveries to benefit people are in hold. Similarly, there are many other reasons for a pause in our ability to help our needy citizens. I urge the Congress to put aside the bickering and think about the people and their sufferings.

The Tea party should pause to think the consequences of their action. Are you for the people who elected you? In that case, why don't you show some maturity? Take your fights to the next election and let the people decide. It is shameful the way our politicians are behaving and treat the tax payers who pay for their salary with derision. At this rate, US will become a non player in the world. Is this the kind of legacy the Tea party is striving for? Watch out, you will get what you wish for. Grow up before you become irrelevant.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid