Debt-Ceiling Battle This Time Around Offers New Twists

Here we go again. The U.S. government is hitting the debt limit, triggering a familiar cycle of brinkmanship, bipartisan negotiation and possible crisis. This round, however, has a few twists.

- RICHARD RUBIN

Republicans have the power to raise the debt ceiling by themselves, and they will try to do that in their tax, border, energy and spending-cuts legislation that would wrap many of President-elect Donald Trump's priorities into one bill.

"With all that we're doing to restore fiscal health and prosperity, we ought to put the debt ceiling in there as well, because those are the fiscal reforms that I think should be required to do it," said Rep. Jodey Arrington (R., Texas), chairman of the House Budget Committee. "And Trump's committed to it."

If Republicans' efforts collapse, they will need to turn to Democrats to avert a potential government default around the middle of the year, possibly setting the stage for more deadline drama. While many Democrats have made clear they won't sign off on a GOP plan that kicks the debt ceiling to the next Congress or next president, they have signaled support for effectively getting rid of the debt-ceiling threat altogether.

Trump's recent call for a long-term or permanent debt-ceiling increase which fell short among Republicans could become the basis for an agreement with Democrats, said Rep. Brendan Boyle (D., Pa.). Boyle said he is open to working with Trump on a bill that would permanently alter the debt limit, aiming to prevent Republicans from wielding it against a future Democratic president like they did in 2011 and 2023.