Senate Debates Debt Limit Legislation as Default Date Approaches

The bipartisan bill to suspend the federal debt limit and impose spending caps faced a new set of hurdles in the Senate on Thursday when a group of Republican defense hawks raised objections to a Pentagon funding level they said was too low, threatening to delay the plan's passage. which must come into force on Monday to avoid a government default.

Despite warnings from leaders of both parties that the Senate needed to act quickly, a handful of Republicans took to the floor to attack military spending in a negotiated action between Chairman Kevin McCarthy and President Biden and demanded that their concerns be addressed before they could happen. passed.

“To my fellow House members, I can't believe you did this,” said Senator Lindsey Graham, a Republican from South Carolina, accusing the architects of acting undermining the military at a time of escalating threats from Russia and China. “This budget is a win for China.”

Concerns have thrown the Senate's action schedule into flux, with some lawmakers saying a vote could take place later Thursday but officials warning approval may not come until Friday as early as Friday.

The agreement, which was approved in a landslide by the House of Representatives late Wednesday, will increase Pentagon spending to $388 billion for next year, up 3 percent, when many domestic programs are targeted for cuts in the plan. But GOP advocates of higher spending on the military argue the package falls far short of what is needed.

“I just have to say that the fact that this is being called a victory by some on our side is completely inaccurate,” said Senator Roger Wicker, Mississippi Republican, who called the funding levels “grossly inadequate.”

Mr. Graham and others said that at a minimum, they wanted a commitment that Congress would later submit an additional funding bill to increase spending, even though this would substantially reduce the savings Republicans hoped to achieve through their debt limit leverage.

“We know that this budget is insufficient to meet the global threats we face,” said Senator Susan Collins of Maine, the senior Republican on the full Appropriations Committee. “Emergency additions should be arriving soon.”

Opposition erupted soon after Senator Chuck Schumer, New York's Democrat and majority leader, warned that the Senate needed to move quickly and not make changes to the agreement to approve Mr Biden's signature on Monday. He warned lawmakers not to engage in dangerous acts before the so-called X-date of June 5, when Treasury Secretary Janet L. Yellen said the government would run out of money to pay its bills.

“Time is a luxury the Senate does not have if we are to prevent default,” said Mr. Schumer. “June 5th is less than four days away. At this point, unnecessary delays or last-minute delays would be unnecessary and even dangerous risks.”

Even as deals move across the Capitol, the effects of the debt limit continue to pinch. The Treasury Department announced on Thursday that it would postpone the auction of three-month and six-month “bills” – short-term debt that the government no longer has room to take out until the lending limit is suspended.

Several senators said they wanted to propose amendments to the bill, which would suspend the $31.4 trillion debt ceiling through January 2025 while cutting spending on domestic programs. They have the ability to procedurally slow down the action if their opportunity is denied.

The senators were debating which amendment to allow, but Mr. Schumer was determined to beat them. Any changes will force action back into the House, where no action is possible before the default deadline.

“Any change to this bill that forces us to send it back to the DPR is completely unacceptable,” he said. “That would almost guarantee a default.”

Among those seeking votes is Senator Tim Kaine, Democrat of Virginia, who on Thursday called for the repeal of provisions from the law that would have accelerated the approval of an oil pipeline in West Virginia.

“I support improving the licensing process for all energy projects,” said Mr. Caine. “But Congress putting its thumb on the scale so that one particular project doesn't have to follow the same process as everyone else is the definition of unfair and opens the door to corruption.”

After pushing much of the legislative agenda the previous two years, the Senate left negotiating a debt limit to Mr. Biden and Mr. McCarthy, whose calls for spending cuts and other policy changes brought the nation to the brink of default. Nearly all Republican senators signed a letter supporting McCarthy's efforts. As a result, senators have little influence over negotiations and are now forced to approve laws they did not help shape. This left some frustration.

Senator John Cornyn, Texas Republican, praised McCarthy's efforts but said senators had no obligation to simply agree to the deal and deserved the opportunity to change it.

“We are not parties to the agreement,” he said. “Why must we be bound by the strict terms of the agreement? The Senate has not had a say in the proceedings so far.”

But Senator Mitch McConnell of Kentucky, the minority leader, has urged his Republican colleagues to support the plan.

“Last night, the majority of our House colleagues voted in favor of the deal Chair McCarthy reached with President Biden,” he said. “By doing so, they are taking an urgent and important step in the right direction for the health of our economy and the future of our country.”

Joe Rennison reporting contribution from New York.