WASHINGTON – With the government shuttered and a deadline for raising the debt limit just two weeks off, anxious Republicans began steering the party away from a dead-end debate about the health care law and toward discussion of a broader deal to reduce the nation’s debt.
In meetings with rank-and-file lawmakers, House Speaker John Boehner, R-Ohio, has emphasized that he will not permit the country to default for the first time on its debt.
Given that a bloc of hard-line conservatives is unlikely to vote to increase the limit under any circumstances, Boehner has told fellow Republicans that they must craft an agreement that can attract significant Democratic support.
This needs to be a big bipartisan deal, Rep. Tom Cole, R-Okla., a close Boehner ally, said as he emerged from a luncheon meeting in the speaker’s office Thursday. This is much more about the debt ceiling and a larger budget agreement than it is about Obamacare.
One lawmaker, speaking on the condition of anonymity, said Thursday that Boehner has even suggested that he may be willing to risk the fury of conservatives by relying on a majority of Democratic votes – and less than a majority of Republicans – to pass a debt-ceiling increase.
Doing so would recall the vote tallies on the huge political defeats Boehner suffered earlier this year as he agreed to head off year-end tax increases and provide federal relief to victims of Hurricane Sandy.
A senior aide denied that Boehner has suggested such a strategy. Meanwhile, senior policy aides were at work on last-ditch alternatives that could win the support of a majority of Republicans, such as increasing the $16.7 trillion debt limit for a short period – mere days or weeks – to force Democrats to the negotiating table.
Speaker Boehner has always said that the United States will not default on its debt, but if we’re going to raise the debt limit, we need to deal with the drivers of our debt and deficits, Boehner spokesman Michael Steel said in a written statement.
The shift in strategy among Republicans caused a brief sensation Thursday, as political analysts speculated that Boehner, who has long acknowledged the dangers of a default, may be ready to give up the fight.
But Republicans pushed back hard against that idea. Although it may have been a mistake to shut down the government in a quest to dismantle President Barack Obama’s health care law, they said, that does not mean they will roll over on the debt limit without concessions from Democrats.
I don’t think there’s energy in the Republican caucus to have any kind of default on the debt limit, said Rep. James Lankford, R-Okla., a member of the House leadership who represents the conservative class of 2010. But we need a long-term plan to take future debt ceiling increases off the table.
Increasing the debt limit for a couple days, a week would be a horrible way to jump-start talks, Lankford said. We’d rather just get it resolved.
President Barack Obama announced Thursday that he had canceled plans to visit Asia next week because of the shutdown.
A very short-term increase in the debt limit could wreak havoc on the economy and financial markets by dragging the debate well beyond Oct. 17, when the Treasury will exhaust its borrowing authority and begin relying entirely on incoming revenue to pay the nation’s bills.
On Thursday, the Treasury Department released a report on debt ceiling brinksmanship that examined the economic fallout from a similar impasse in 2011, when the nation came within days of defaulting on its obligations.
The report found that consumer confidence plummeted in the months before the 2011 debt limit deadline. So did the stock market, robbing the nation of $2.4 trillion in household wealth, including $800 billion in retirement assets.