On Sunday (November 13), Democratic Congressional Leaders promised they would take on the nation’s debt ceiling in the coming weeks, explaining that their midterm victories offer enough leverage to pull it off, even with Republicans vowing to put up a fight.
Senate Majority Leader Chuck Schumer (D-N.Y.) and House Speaker Nancy Pelosi (D-CA.) explained they would tackle the debt ceiling while Democrats still have control of both chambers.
Speaking on ABC News’s “This Week” on Sunday, Pelosi noted that now is the Democrats’ “best shot” to tackle the debt ceiling.
Pelosi explained that the Senate win had given Democrats “a lot of leverage” regarding how the party acts going forward.
Schumer revealed that Democrat leaders would be meeting this week to strategize about the legislative path, naming the debt ceiling as an issue they “will look at over the next few weeks,” but didn’t mention any specifics.
Janet Yellen, Treasury Secretary, has urged Democratic Congressional leaders to act before the new Congress is seated in January. The nation’s $31.4 trillion line of credit is expected to be reached within the first quarter of 2023.
If the debt ceiling isn’t raised by the time the country reaches the current limit, the nation runs the risk of default, which would have catastrophic effects on the economy.
Raising the debt ceiling before the new Congress is seated in January is also crucial as Democrats could face an uphill battle if Republicans take control of the House — which is likely, but many races still need to be called.
Should Republicans win the House Majority, they have vowed to “rein in” federal spending by targeting the debt ceiling.