February 12, 2014

Fractured House approves debt ceiling hike; ‘clean’ bill drops all GOP demands

The House passed a “clean” debt ceiling increase Tuesday granting President Obama power to borrow as much as the government needs for the next 13 months, after House Republican leaders surrendered on their long-standing demand that debt hikes be matched with spending cuts.

Unable to muster his own troops, Speaker John A. Boehner, Ohio Republicans, had to turn to Democrats to provide the necessary votes. The bill, which cleared on a 221-201 vote, now goes to the Senate.

The legislation must be approved by the end of the month, when the Treasury Department says it will run out of borrowing room.

Even as he advanced the bill and voted for it, Mr. Boehner washed his hands of the blame.

“It’s the president driving up the debt and the president wanting to do nothing about the debt that’s occurring,” the speaker said. “So let his party give him the debt-ceiling increase that he wants.”

Democrats hailed the vote as a victory and heaped praise on Mr. Boehner, who they said he put the country ahead of the tea party wing of the GOP by holding the vote.

Just 28 Republicans joined 193 Democrats in voting for the increase. Two Democrats and 199 Republicans voted against it.

“Once again, the Republican Party and their caucus has shown they’re not responsible enough to be ruling and governing here,” said Rep. Joseph Crowley, New York Democrat.

Business groups, worried about the effects of bumping up against the limit, urged Congress to act.

But conservative and tea party groups warned of dire political consequences for Republicans who voted for the increase.

For the past century, Congress has imposed a borrowing limit on the federal government. As the government has run up record deficits under President George W. Bush and Mr. Obama, lawmakers have repeatedly raised the limit — though it’s often been a major battle.

As of Monday, the gross debt stood at $17.259 trillion. It was $10.629 trillion when Mr. Obama was inaugurated in 2009.

Under the new debt policy, the government’s borrowing limit would be suspended until March 15, 2015, meaning whatever debts are incurred until then would be tacked onto the legal limit.

It’s impossible to predict how much debt would accumulate, but the government has added more than $800 billion in gross debt in the past 13 months.

For Republicans, the vote was a major retreat. When he became speaker in 2011, Mr. Boehner vowed to use debt increases as leverage to extract spending cuts. He set a goal of matching debt increases “dollar for dollar” with cuts.

In 2011, during the first debt fight of his tenure, he won a deal that has cut overall spending for two consecutive years — the first time that has been achieved since 1950.

Since that peak, though, Republicans have struggled to win concessions on three successive debt votes and has reversed its push against spending. Indeed, December’s budget deal offset some of the cuts Republicans won in the 2011 budget agreement.

On Tuesday, Republicans said they were left with little choice.

With so many Republicans opposed to any debt increase, leaders were unable to come up with the votes to pass a plan that would halt parts of Obamacare or build the Keystone XL pipeline in exchange for a debt increase.

Most of the 28 Republicans who voted in favor of the clean debt increase were leaders, chairmen of committees or members of the Appropriations Committee.

Rep. Tom Cole, an Oklahoma Republican who voted against the debt increase, said Mr. Boehner had no options, but he added that the result of agreeing to a third straight increase with no major cuts attached is that Republicans lose leverage in any future debt negotiations.

“I understood the previous times, but I think we’re slipping into a bad habit,” he said. “I’m not here condemning people for what they did — they’ve done it to try and deal with the immediate situation, but I think long term, we need to rethink how we do it and a lot of Democrats would like to get rid of the whole debt ceiling idea altogether. I think that’s a mistake, personally.”

Mr. Obama and congressional Democrats remained united throughout the battle for a clean debt increase. That left Mr. Boehner with no negotiating partner and no offer of his own.

“We don’t have 218 votes. And when you don’t have 218 votes, you have nothing,” the speaker told reporters ahead of the vote, explaining his lack of leverage.

Just a single Republican — Ways and Means Committee Chairman Dave Camp of Michigan — spoke during the floor debate.

Most Republican lawmakers seemed eager to move on and saw the vote as a way to “clear the decks” of a thorny political problem and resume attacks on Obamacare and Mr. Obama’s other policies.

Democratic leaders were eager to debate the bill. House Minority Leader Nancy Pelosi of California said it proved that Democrats were the ones interested in upholding the Constitution’s directive that the validity of the debt never be questioned.

“The full faith and credit of the United States of America is not in doubt,” Mrs. Pelosi said.

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