Day 10 of Government Shutdown – Six Week Debt Limit Extension Possible

As the partial government shutdown continues into its tenth day, there have been signs that a potential, short-term deal to end the government shutdown and avert a national default by temporarily raising the debt ceiling may be in the works.  Speaker of the House of Representatives John Boehner (R-Ohio) and President Obama had dueling press conferences this week, each detailing their requirements for ending the shutdown and averting default.  Speaker Boehner insisted on the president sitting down with Republicans to discuss a path forward, while the president reiterated his position for a clean continuing resolution and refused to negotiate spending cuts as part of a debt ceiling increase.  These press conferences did, however, yield some movement, with the president planning to meet separately with Republicans and Democrats from the House and Senate.  These talks and the potential ramifications of not raising the debt ceiling have injected a very small bit of optimism that, at the very least, an agreement can be reached on averting a government default. At a meeting this morning, House Republican leadership pitched a new plan to their members to increase the debt ceiling for six weeks – ensuring the United States meets all of its obligations – while keeping the government shut down.  This plan may just be a bargaining tool due to the Democrats’ insistence of reopening the government and raising the debt ceiling without any strings attached and the potential opposition from some of House Republicans.   Any agreement on a path forward will likely depend on the meeting this afternoon with House Republicans and President Obama.  The looming question is whether the president is willing to forego opening the government in return for a clean extension of the debt ceiling with assurances from Republicans that they will negotiate over the budget with Democrats.  White House officials have indicated that the president is open to the Republican debt limit proposal. The situation is extremely fluid. There seems to be consensus that the debt limit will be extended, but under what conditions remains to be seen.  AGC continues to urge for an end to the government shutdown and an increase in the debt limit followed by serious negotiations on dealing with the debt and deficit in comprehensive fashion. For more information, please contact Sean O’Neill at (202) 547-8892 or oneills@agc.org.