U.S. Senator Susan Collins (Republican from Maine) addresses a Senate Health, Education, Labor and Pensions Committee hearing on September 23, 2020 in Washington, DC. Alex Edelman-Pool/Getty Images
Senator Collins suggested that the GOP would support a debt limit increase if Democrats abandon Biden's economic agenda.
Collin's suggestion was flatly rejected by Democrats.
The standoff between Republicans and raising the debt limit is intensifying, pushing the US closer towards default.
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Senator Susan Collins, Maine suggested that some Republicans would support a debt limit increase if Democrats dropped the $3.5 trillion Social Spending Package that contained the bulk of President Joe Biden’s economic agenda.
She suggested Monday that some Republicans would vote to increase the debt limit if the Democrats were to abandon the $3.5 Trillion package. Although this seems unlikely, it's still possible to reach an agreement.
The Maine Republican agreed with Senate Minority Leader Mitch McConnell, and called on Democrats to unilaterally raise it through reconciliation. This is the same tactic the party uses to approve its large social spending plan, which relies on Democratic votes and ignores unanimous GOP opposition.
Democrats want to expand Medicare, Medicaid, ensure that families can access and afford childcare, increase four years of public education with universal PreK and tuition-free community colleges, and renew monthly cash payment to families as part of their spending plan.
Democrats insist that they will not renew the nation's ability pay its bills. The US debt limit is the maximum amount it can borrow to repay existing debts. It is not possible to raise it. They also dismissed as non-starters Biden's expansive domestic agenda in return for GOP support to raise the debt ceiling.
In a tweet, Rep. Don Beyer, of Virginia, the chair of Joint Economic Committee, stated that "Senate Republicans hold our economy hostage." "Mitch McConnell claimed that he doesn't make demands for the debt ceiling. But Susan Collins revealed the truth: They want the President to abandon the agenda that the American people voted him to.
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"This reflects a general attitude of Republican conference to burn them all down when out power," an aide to the Senate Democratic Committee told Insider.
Monday's impasse in the debt limit was exacerbated by Biden attacking Senate Republicans for blocking Democratic efforts at approving a debt limit increase with bipartisan support. Biden called it "hypocritical and dangerous" during Monday's press conference.
He could not guarantee that the US would avoid a catastrophic default. He said, "That's up Mitch McConnell."
Democrats have criticized the GOP's reasoning for not lifting the debt ceiling. They argue that both parties are responsible to adding to the federal debt through emergency spending during the pandemic, and domestic spending increases under Donald Trump. Trump's administration also lifted or suspended three times the debt ceiling.
The Democrats can lift the debt ceiling by themselves. It could take at least two weeks to complete the task, and there is no guarantee that they will be able to do it before Oct. 18, due to strict reconciliation guidelines.
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