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      GOP plan to block House measure could trigger an unprecedented $28tn default

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      US politicsGOP plan to block House measure could trigger an unprecedented $28tn defaultOpposition from Mitch McConnell means the spending package is dead and the US faces a shutdown and default Hugo Lowell in Washington DCThu 23 Sep 2021 02.00 EDTLast modified on Thu 23 Sep 2021 02.30 EDTTop Republicans in the Senate are poised to block a key spending package advanced by Democrats in a move that could precipitate the dual fiscal crises of a government shutdown and an unprecedented US default on its colossal debt obligations.The House has approved a combined stopgap funding measure that would keep the federal government open until early December and suspend the debt limit until after the 2022 midterm elections, sending the legislation to the Senate.But the Senate minority leader Mitch McConnell swiftly announced that Republicans would sink the measure with a filibuster and prevent it from receiving the 60 votes needed to pass – causing a government shutdown on 1 October and a default weeks later.Biden knows fate of spending plan will show extent of his power – and define his legacy Read moreThe opposition from McConnell means the Democrats’ proposal is dead on arrival. And with no serious discussions to resolve the high-stakes showdown in sight, the US now faces the prospect of a shutdown government defaulting on $28tn of debt.At issue are the consequences of an unprecedented default on federal debt, which could plunge the economy into an immediate recession, trigger a meltdown in global financial markets and lead to the downgrading of America’s credit rating. Economists say a prolonged impasse could cost the US economy millions of jobs, wipe out trillions in household debt and send unemployment rates surging.The debt limit corresponds to the amount the US government can borrow to pay its bills. Most recently, Democrats joined Republicans to suspend it until the end of July, after which the Treasury Department has used emergency measures to finance obligations.The US has previously avoided defaults at the last minute but with Republicans entrenched in their refusal to tackle the debt limit problem in bipartisan fashion, the latest standoff is likely to come down to the wire, said sources familiar with the matter.Treasury secretary Janet Yellen reiterated the urgency of the situation in a recent letter to Congress, warning that the US was on track to default in mid-October and cause “irreparable harm” to the economy if Congress failed to take action.Alarmed at the deteriorating nature of discussions in the House and Senate, Yellen also held private discussions this month with McConnell and former Republican Treasury secretaries Steven Mnuchin and Henry Paulson, though those did not resolve the impasse.Democrats have long insisted that Republicans tackle both the government shutdown issue and the debt limit issue through a bipartisan vote, arguing that they joined Republicans in raising the debt ceiling when Donald Trump was president.The House speaker, Nancy Pelosi, and the Senate majority leader, Chuck Schumer, have also reiterated in recent days that it was mainly because of Republicans that the national debt increased by roughly $8tn during the previous administration.Pelosi said in a recent news conference that the need to suspend the debt limit stemmed in part because of tax cuts to the wealthy enacted during Trump’s time as president. “We’re paying the credit card, the Trump credit card,” Pelosi told reporters.But the Democrats’ plan to pair the stopgap spending bill with the debt limit suspension – and dare Republicans to block it – has now run headlong into Republican resistance led by McConnell that shows no sign of reversing course.McConnell has suggested for weeks that Democrats instead include the debt limit language in the $3.5tn infrastructure package that Schumer plans to pass with a fast-track procedure known as reconciliation that requires only a party-line vote.But House budget committee chairman John Yarmuth dismissed the proposal as unworkable on Wednesday, saying that his staff had determined that it was “virtually impossible” to tackle the debt limit through the infrastructure package or even as a standalone bill.The difficulty, according to sources familiar with the procedure, is that including the debt limit in the $3.5tn infrastructure package would require Democrats to return the bill to the House and Senate budget committees and then schedule votes in both chambers.Yarmuth told reporters there would not be enough time to re-run the entire process before the looming end-of-month deadline – meaning that without a reversal by Republicans, the US could drop off the proverbial fiscal cliff.“We could start the process over with a separate budget-reconciliation bill that is devoted to just raising the debt limit – the law allows us to do that,” Yarmuth said. But he warned: “That’s a matter of weeks. So, you’re up against a potential deadline.”Democrats could still move to advance a ‘clean’ stopgap funding bill devoid of language to suspend the debt limit, which Republicans have privately suggested they would not filibuster, and take action on the debt limit in a subsequent standalone bill.But even though such a measure would avert the immediate calamity of a government shutdown on 1 October, it would still leave Congress with no path to lift the debt limit after Republican senator Ted Cruz confirmed he would block a standalone bill.Justin Goodman, a spokesperson for Schumer, criticized McConnell for refusing to join Democrats for what has in years past been regarded as a routine step that allows the US treasury to meet its debt obligations.“Every American will know that Senate Republicans are to blame,” Goodman said.TopicsUS politicsRepublicansDemocratsUS SenatenewsReuse this content More

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      in US Politics

      Biden announces US will donate another 500m vaccine doses at Covid summit – live

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      Key events

      Show

      5.38pm EDT
      17:38

      Federal Reserve hints it will end pandemic stimulus programs

      5.00pm EDT
      17:00

      Today so far

      4.29pm EDT
      16:29

      Biden to consider ‘potential further executive actions’ after police reform talks fail

      1.53pm EDT
      13:53

      Police reform negotiations come to a formal close, Bass says

      12.54pm EDT
      12:54

      France to send ambassador back to US after Macron-Biden call

      12.03pm EDT
      12:03

      Today so far

      11.00am EDT
      11:00

      Biden to announce US will donate another 500m vaccine doses to other countries

      Live feed

      Show

      5.44pm EDT
      17:44

      Dominic Rushe

      The latest Fed statement also showed that more members of the Fed committee now believe that interest rates should rise in the near future. Nine of the 18 officials expect to raise interest rates by the end of 2022, up from seven officials in June when a majority said they thought rates would rise in 2023.
      US stock markets reacted favorably to the news, which suggests the economy is still recovering from the pandemic, albeit with uncertainties remaining. Investors have been spooked in recent days by news that troubled Chinese property developer Evergrande could default on its $300bn debts. The company’s woes could drag in investors worldwide, but on Tuesday the company said it would be able to meet some of its obligations.
      Powell said the situation “seems particular to China which has very high debt for an emerging market economy.
      “In terms of the implications for us, there is not a lot of direct United States exposure,” he said.

      5.38pm EDT
      17:38

      Federal Reserve hints it will end pandemic stimulus programs

      Dominic Rushe

      The Federal Reserve signaled on Wednesday that it may start cutting its enormous pandemic stimulus programs as soon as November and could raise interest rates next year.
      The US central bank left interest rates unchanged at near zero after its latest meeting. Rates were cut in March 2020 as the US economy reeled from the impact of the pandemic. But the Fed also indicated it may soon start pulling back on the $120bn in monthly asset purchases program that it started when the coronavirus hit the US.
      “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted,” the Fed’s post-meeting statement said.
      At a press conference Fed chair Jerome Powell said the jobs market was “very strong” and that while the central bank was trimming its forecasts for economic growth it still foresees “rapid growth” in the economy.
      Powell said the pandemic was still having an impact and that bottlenecks and shortages were driving price inflation but he expected that situation to ease as long as the coronavirus pandemic is contained. “The path of the economy still continues to depend on the course of the virus,” he said.
      Read more:

      5.17pm EDT
      17:17

      Florida’s surgeon general Joseph Ladapo has issued a new emergency rule that parents can decide whether or not their children should quarantine after being exposed to someone who tested positive for Covid-19.
      Governor Ron DeSantis announced that Lapado, who has been skeptical of research-backed public health measures like mask-wearing, lockdowns and vaccines to curb the spread of coronavirus, would be the state’s new surgeon general on Tuesday. The Republican governor has tried to ban schools from enforcing mask mandates.
      The new rule states that parents rather than school administrations, must be the ones to decide asymptomatic kids who have been exposed to the virus should quarantine.
      It was “important to respect the rights of parents”, Ladapo said.
      The new emergency rule will replace a previous rule requiring students to quarantine for four days after being exposed.

      Updated
      at 5.33pm EDT

      5.00pm EDT
      17:00

      Today so far

      That’s it from me today. My west coast colleague, Maanvi Singh, will take over the blog for the next few hours.
      Here’s where the day stands so far:

      Joe Biden announced the US will donate another 500 million Pfizer coronavirus vaccine doses to other countries. The announcement means the Biden administration has now committed to sending more than 1.1 billion vaccine doses abroad. “Put another way, for every one shot we’ve administered to date in America, we have now committed to do three shots to the rest of the world,” Biden said at a virtual Covid summit today.
      Emmanuel Macron is sending the French ambassador to the US back to Washington, after he and Biden had a conversation today about France’s outrage over the Aukus defense deal. The French president also plans to meet with Biden in Europe next month.
      Bipartisan talks over a police reform bill have officially collapsed, after months of back-and-back between the negotiators. Democratic congresswoman Karen Bass blamed the failure on Republicans involved in the negotiations, saying in a statement, “Every time, more was demanded to the point that there would be no progress made in the bill that we were left discussing.” Biden said he would consider “potential further executive actions” to address police reform after the talks collapsed.
      House Democrats passed their spending bill to keep the government funded and suspend the debt ceiling until December. However, the legislation faces bleak prospects in the evenly divided Senate, where Republican leader Mitch McConnell has pledged to oppose any effort to raise the debt ceiling.
      The select committee investigating the Capitol insurrection is considering issuing a number of subpoenas to former Trump administration officials. Former White House chief of staff Mark Meadows, deputy chief of staff Dan Scavino and former Trump campaign manager Brad Parscale are among those who are likely to get subpoenaed by the committee.

      Maanvi will have more coming up, so stay tuned.

      4.44pm EDT
      16:44

      House speaker Nancy Pelosi said the chamber is “on schedule” to hold a vote on the bipartisan infrastructure bill on Monday.
      Asked whether the House will also be ready to vote on the reconciliation package by Monday, as progressive lawmakers have demanded, Pelosi did not give a concrete answer.

      Zak Hudak
      (@cbszak)
      “We’re on schedule, let’s put it that way,” Speaker Pelosi says of the bipartisan infrastructure deal slated to reach the floor next wk. She wouldn’t say when the reconciliation package would be considered but said, “We’re calm and everybody’s good.” pic.twitter.com/H6hZa8sigz

      September 22, 2021

      “We’re calm, and everybody’s good, and our work’s almost done,” Pelosi told reporters on Capitol Hill.
      The Democratic speaker met with Joe Biden at the White House this afternoon, as progressives threaten to block the infrastructure bill over their concerns about the reconciliation package.

      4.29pm EDT
      16:29

      Biden to consider ‘potential further executive actions’ after police reform talks fail

      Joe Biden said he will consider “potential further executive actions” to address police reform after the bipartisan team of congressional negotiators failed to reach a deal on a bill.
      “The murder of George Floyd is a stain on the soul of America,” the president said in a new statement addressing the collapse of the negotiations. “It spurred the nation to collectively demand justice, and we will be remembered for how we responded to the call.”
      Biden said he was “deeply grateful” to congresswoman Karen Bass and Senator Cory Booker for working to reach an agreement over the past several months.
      “Regrettably, Senate Republicans rejected enacting modest reforms, which even the previous president had supported, while refusing to take action on key issues that many in law enforcement were willing to address,” Biden said.
      The president noted he still hoped to sign police reform legislation, but he said he would soon explore additional steps to determine what executive action he may be able to take on the issue.
      “In the coming weeks, we will continue to work with Senator Booker, Congresswoman Bass, and other members of Congress who are serious about meaningful police reform,” Biden said.
      “The White House will continue to consult with the civil rights and law enforcement and civil rights communities, as well as victims’ families to define a path forward, including through potential further executive actions I can take to advance our efforts to live up to the American ideal of equal justice under law.”

      4.11pm EDT
      16:11

      The White House shared a photo from Joe Biden’s phone call with French President Emmanuel Macron earlier today.
      “Today I spoke with President Emmanuel Macron of France, and reaffirmed the importance of French and European engagement in the Indo-Pacific region,” Biden said in a tweet that included the photo.
      “I look forward to a process of in-depth consultations and to meeting with him in October.”

      President Biden
      (@POTUS)
      Today I spoke with President Emmanuel Macron of France, and reaffirmed the importance of French and European engagement in the Indo-Pacific region. I look forward to a process of in-depth consultations and to meeting with him in October. pic.twitter.com/MouVMCBgDR

      September 22, 2021

      Asked about the two leaders’ conversation during the White House press briefing, Jen Psaki said the call was “friendly” and lasted around 30 minutes.
      “It was one where we’re hopeful and the president is hopeful this is a step in returning to normal,” Psaki said of the phone call.
      Psaki did not explicitly say whether Biden apologized to Macron for failing to give him advance notice about the Aukus defense deal, instead telling reporters, “He acknowledged that there could have been greater consultation.”

      3.55pm EDT
      15:55

      Civil rights attorneys Ben Crump and Antonio Romanucci, who have represented the family of George Floyd, expressed “extreme disappointment” over the collapse of police reform talks in Congress.
      “In the last year and a half, we have witnessed hundreds of thousands of Americans urging lawmakers to bring desperately needed change to policing in this country so there can be greater accountability, transparency, and ultimately trust in policing,” the lawyers said in a statement.
      “We can not let this be a tragic, lost opportunity to regain trust between citizens and police.”
      Crump and Romanucci urged Senate Democrats to bring the George Floyd Justice in Policing Act, which passed the House in March, to the floor “so Americans can see who is looking out for their communities’ best interests”.

      3.39pm EDT
      15:39

      In his own statement on the collapse of the police reform negotiations, Democratic Senator Cory Booker said the talks failed because there was “too wide a gulf with our negotiating partners”.
      “We made it clear from the beginning of our negotiations that a bill must ensure true accountability, transparency, and the policing standards necessary to bring an end to horrific incidents of violence Americans are routinely seeing — like the murder of George Floyd,” Booker said.
      “After months of exhausting every possible pathway to a bipartisan deal, it remains out of reach right now, even after working collaboratively with and securing the support of policing groups like the Fraternal Order of Police and International Association of Chiefs of Police for our proposals.”
      Echoing fellow Democratic negotiator Karen Bass, Booker said the time had come to “explore all other options to achieve meaningful and common sense policing reform”.
      “I will not stop fighting until we achieve change that keeps our communities and police officers safe,” Booker concluded.

      3.20pm EDT
      15:20

      Jen Psaki said Joe Biden was “disappointed” that the bipartisan negotiations over the police reform bill collapsed without a deal today.
      “Unfortunately, Republicans rejected reforms that even the previous president had supported and refused to engage on key issues that many in law enforcement were willing to address,” Psaki said.
      The press secretary noted Biden was “greatly appreciative” for congresswoman Karen Bass and senator Cory Booker’s efforts in the negotiations.
      Psaki said Biden would be meeting with members of Congress, law enforcement groups and civil rights advocates in the weeks to come to discuss a path forward, “including potential executive actions” that he can take on police reform.

      3.03pm EDT
      15:03

      Jen Psaki said the White House is “certainly” concerned about the possibility of the government shutting down next week if a funding bill is not approved.
      “Until a [continuing resolution] has passed that funds the government, we’ll certainly have a concern,” the White House press secretary said. “But our goal and our focus is on preventing that from happening.”
      Noting that the House has already passed a bill to fund the government and suspend the debt ceiling until December, the press secretary expressed hope of the situation being resolved soon.
      However, the House-passed bill faces dim prospects in the evenly divided Senate, where Republican leader Mitch McConnell has vowed to block any effort to raise the debt ceiling.

      2.48pm EDT
      14:48

      Jen Psaki was asked about Joe Biden’s meetings today with members of Congress to discuss the bipartisan infrastructure bill and the $3.5tn reconciliation package.
      One reporter pressed Psaki on whether this marks a “make or break” moment for the two bills, which encompass much of the president’s economic agenda.
      The press secretary declined to characterize the meetings in that way, instead saying, “This is an important moment. We are in a pivotal period in our negotiations and discussions.”

      2.32pm EDT
      14:32

      One reporter asked Jen Psaki whether Joe Biden apologized to Emmanuel Macron for how the Aukus deal was announced.
      “He acknowledged that there could have been greater consultation,” the White House press secretary said. “There was agreement that we wanted to move forward in our relationship.”

      Asked if Biden held national security adviser Jake Sullivan responsible for the dust-up with France, Psaki replied, “He holds himself responsible.”

      Updated
      at 4.38pm EDT More

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      in Elections

      Antony Blinken chuckles as Republican senator makes Joe Biden mute button claims – video

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      The Republican senator Jim Risch pressed the secretary of state, Antony Blinken, over rumours someone in the White House has the ability to cut off the president’s microphone when he speaks. While Blinken chuckled throughout the questioning, Risch continued to press his claims after an earlier video from the White House featuring Biden cut off during a briefing. ‘It’s been widely reported that somebody has the ability to push the button and cut off his sound and stop him from speaking,’ Risch said. 
      Blinken replied: ‘Anyone who knows the president, including members of this committee, knows that he speaks very clearly and very deliberately for himself’

      Mic drop: Republican senator’s claim of button to silence Biden draws chuckles More

    • 188 Shares159 Views

      in US Politics

      How Democrats could actually pass their new voting rights bill | The fight to vote

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      Fight to voteUS voting rightsHow Democrats could actually pass their new voting rights billDespite the huge obstacle that the filibuster poses, this new bill is significant – Democrats aren’t willing to let voting reform go The fight to vote is supported byAbout this contentSam LevineThu 16 Sep 2021 10.00 EDTLast modified on Thu 16 Sep 2021 13.16 EDTSign up for the Guardian’s Fight to Vote newsletterHappy Thursday,My inbox quickly filled up with statements of support on Tuesday morning after Democrats unveiled the latest iteration of a federal bill that would drastically expand voting rights.The bill, the Freedom to Vote Act, has been described as a “compromise”, hashed out over the summer by a group of Senate Democrats after Republicans filibustered an earlier version of it. But while the bill does get rid of some key things from the initial version, it still is pretty expansive. It would require states to offer at least 15 days of early voting, along with same-day registration, as well as automatic and online registration. It would enshrine new protections for local election officials and poll workers amid growing concerns about intimidation and partisan interference in their work. And it sets new criteria that states have to follow when they draw electoral districts to curb the practice of severely manipulating districts for partisan gain.We’ve been here before. It’s no secret that the bill is probably dead on arrival in the US Senate as long as the filibuster, the rule that requires 60 votes to advance legislation, remains in place. A handful of Democrats, led by Senators Joe Manchin and Kyrsten Sinema have vocally supported keeping the measure in place.As I read through the cascade of statements praising the new bill, I was struck by how many of them coupled their enthusiasm with calls to eliminate the filibuster. It was a grim recognition of the quagmire Democrats have confronted since taking control of Congress in January: voting reform is impossible while the filibuster is in place.So where do things go from here?Despite the huge obstacle that the filibuster still poses, I do think this new bill is significant. First, it shows that Democrats aren’t willing to let voting reform go; by coming back so quickly with a new bill, they’re signaling that they are prepared to force a fight over the filibuster.Second, Democrats are showing Republicans that they are willing to make concessions in their signature piece of legislation. They dropped a provision from the earlier version that would have required officials to send absentee ballot applications to all registered voters. They also got rid of a provision that would have required every state to set up independent commissions to draw districts. The new legislation also allows states to require identification to vote while also setting up a process for people who lack ID to vote. These will all up the ante on Republicans to negotiate in good faith.Third, it’s significant that Manchin played an active role in crafting the bill and is now the one shopping it around to get Republican support. That support seems unlikely (“It is a solution in search of a problem, and we will not be supporting that,” Mitch McConnell, the Republican leader in the Senate, said on Tuesday). If Manchin is unable to personally persuade Republicans to sign on, despite the concessions from Democrats, it will only increase pressure on him to revise his stance on the filibuster.Joe Biden also has indicated a new willingness to pressure reluctant Democrats on their filibuster position.‘All options are on the table’Manchin said this week “the filibuster is permanent”. But there are a number of things Democrats could do short of getting rid of the rule entirely. They could carve out voting rights legislation from the filibuster, or lower the threshold needed to advance legislation down from 60 votes. They could also require anyone who wants to filibuster legislation to actually speak continuously on the Senate floor to delay legislation, an idea Biden has endorsed.Whatever Democrats ultimately do, one thing is clear: it needs to happen quickly (Chuck Schumer, the Senate majority leader, has vowed to hold a vote on the measure as soon as next week). States are already beginning the once-a-decade process of redrawing district lines, making it all the more urgent to get the anti-gerrymandering provisions of the bill in place.“We are giving him the opportunity to do that with a bill that he supports and that he modified,” Schumer said of Manchin on Tuesday. “If that doesn’t happen, we will cross that bridge when we come to it. As I’ve said, all options are on the table.”Reader questionsThank you to everyone who wrote in last week with questions. You can continue to write to me each week at sam.levine@theguardian.com or DM me on twitter at @srl and I’ll try and answer as many as I can.Q: I’m originally from France, and don’t get me wrong, I’m not in support of any voting restrictions, however, we’ve always had to show our IDs in order to be able to vote in France, and it’s never really been a problem (I don’t think). So I’m wondering why ID requirements are such a big deal in the US to vote.Unlike many European countries, the US doesn’t automatically issue a free identification card to its citizens. There are some experts I’ve spoken with who believe that if the US did automatically issue free ID cards, a voter ID requirement would be more tolerable. (You can read more on this idea in this recent piece in the Atlantic.)Academic research on voter ID has shown mixed things on the effect it has on overall turnout. Nonetheless, courts in Texas and North Carolina have found in recent years that lawmakers have specifically enacted voter ID requirements intending to discriminate against minority voters.In many cases, the key part of a voter ID measure is not whether ID is required, but what kinds of IDs are acceptable and how easy it is for someone to prove their identity and vote if they don’t have an acceptable ID. In Texas, for example, lawmakers infamously allowed people to vote using a state gun permit, but not a student ID. In North Carolina, lawmakers excluded IDs they knew Black people were more likely to possess from those acceptable to vote.One last point: states often justify ID measures by saying they will offer free ID to anyone who cannot afford one. But that’s somewhat misleading. Even if there is no dollar amount attached to an ID, there’s a time cost for people to gather the documents they need to prove their identity and take the time to go to the DMV to do that.Q: I’m an ignorant Brit with a simple question: how come fair and equally accessible voting isn’t guaranteed in the US constitution?A lot of people are really surprised to learn there’s no guaranteed right to vote in the constitution. The Founding Fathers initially limited voting to a small group of people.Later amendments to the constitution protect access to voting by outlining the reasons why government can’t block people from the ballot box. The 15th amendment, for example, says that government can’t block someone from voting “on account of race, color, or previous condition of servitude”. As concerns over voter discrimination rise, some scholars believe there should be a renewed push to add an affirmative right to vote to the constitution.TopicsUS voting rightsFight to voteUS politicsDemocratsRepublicansUS SenatefeaturesReuse this content More