Merkley, Boyle, Durbin, Kaine Introduce Legislation to Prevent Future Debt Ceiling Hostage Taking

For Years, Republicans Have Held the Debt Ceiling Hostage, Continually Putting the United States’ Credit at Risk

WASHINGTON, D.C. – Today, U.S. Senator Jeff Merkley (D-OR), Ranking Member of the Senate Budget Committee, and U.S. Representative Brendan F. Boyle (D-PA-2), Ranking Member of the House Budget Committee, introduced legislation that would end the political brinkmanship around the debt ceiling and allow for a process to suspend the debt ceiling, subject to a congressional override. In addition to Senator Merkley and Congressman Boyle, U.S. Senators Dick Durbin (D-IL) and Tim Kaine (D-VA) are cosponsoring the legislation. In May, President Donald Trump signaled his support for scrapping the debt ceiling to avoid an “economic catastrophe.”

“A debt default has the power to destroy our economy, and that’s exactly why we need to make sure it never happens,” said Ranking Member Merkley. “We have seen Republicans use the debt ceiling as a political hostage time and time again – leading us closer to default than ever before. Continuing on the path we’re on now is all risk and no reward. We can—and must—reform this process in a way that maintains congressional oversight while de-weaponizing the debt ceiling. Doing so is the best and safest path forward for our economy and for the American people.”

“We cannot allow Republican debt ceiling brinkmanship to bring our economy to the verge of catastrophe,” said Ranking Member Boyle. “If President Trump is serious about avoiding the devastating consequences of a default, this legislation must represent the bare minimum standard for any agreement. I have spent a decade working to reform the debt ceiling, and I remain ready to work with anyone committed to finally addressing this persistent threat to our economy.”

“Time and time again, we have come far too close to a catastrophic default crisis, proving that our current debt ceiling process is broken and unsustainable. For the sake of the American people and for the good of our economy, we need legislation to reform the way we address the debt ceiling. The Debt Ceiling Reform Act is responsible, common sense legislation that will give the Treasury the authority to suspend the debt ceiling, absent a resolution of disapproval from Congress,” said Senator Durbin. “President Trump has repeatedly called to abolish the debt ceiling. If Republicans are truly concerned about the economic well-being of America, they will work with us on this sensible solution.”

“Defaulting on our debt would be catastrophic to our economy, raise mortgage and borrowing costs, and threaten our ability to provide Social Security, Medicare, and veterans benefits,” said Senator Kaine. “We must make reforms to stop the reckless political brinksmanship regarding the debt limit that we’ve seen in recent decades. That’s why I’m joining my colleagues in introducing this commonsense bill to do just that.”

The idea of having the president increase the debt ceiling, subject to a vote of congressional disapproval, was originally proposed by then-Senate Minority Leader Mitch McConnell. McConnell’s proposal was incorporated into the Budget Control Act of 2011, which, enacted in August of that year, authorized the president to increase the debt ceiling in three installments. While the broader Budget Control Act had numerous flaws, the mechanism proposed under the McConnell plan was key to avoiding a disastrous debt default.

The Debt Ceiling Reform Act would reform the process of raising the debt ceiling by making the following changes:

Allows the Treasury Secretary to initiate a process to suspend, or continue to suspend, the debt limit for up to two years.
As early as 60 days prior to reaching the debt limit, the Treasury Secretary could submit a certification to Congress to suspend the debt limit for up to two years. This process must begin at least 46 days before reaching the debt limit or the suspension of the debt limit expires.
The debt ceiling suspension would take effect 46 calendar days after Congress receives the certification, unless Congress passes, and the President signs, a joint resolution of disapproval within 45 calendar days of the certification.
The joint resolution of disapproval would be a privileged motion qualifying for expedited consideration by Congress.
If the Debt Ceiling Reform Act is enacted during a period where the debt limit is not suspended--our current scenario--it would require the Treasury Secretary to submit a certification to Congress to suspend the debt limit for up to two years within 10 days of enactment.

For years, Merkley, Boyle, Durbin, and Kaine, have introduced similar legislation that would end the political brinkmanship around raising the debt ceiling and allow the executive branch to raise it while maintaining congressional oversight.

The bill text is HERE.

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