Funding for federal agencies expires on Oct. 1 and the U.S. Treasury has warned it could run out of money to pay the government’s bills by some time in October, potentially triggering a default.
- House Budget Committee Chairman John Yarmuth said “parliamentary obstacles” prevent Democrats from including language to raise the debt ceiling in a social spending bill moving through Congress under the “budget reconciliation” maneuver that circumvents the need for Republican votes.
- It further complicates a messy picture for Congress, where talks aimed at police reform collapsed on Wednesday and the moderate and progressive wings of President Joe Biden’s Democratic Party are divided on the size of a proposed $5.5 trillion social spending bill that is at the core of the White House’s domestic legislative agenda.
- Republicans say they support additional spending to keep the government operating with the Oct. 1 start of the fiscal year and to help communities recover from recent natural disasters.
- The White House said in a statement after the meetings that “progress was made toward finding the pathway forward” on both bills. It said Biden and his team would have follow-up meetings starting on Thursday.