Showing posts with label Debt Ceiling. Show all posts
Showing posts with label Debt Ceiling. Show all posts

Monday, May 08, 2023

Today in Bloomberg Opinion: The Debt Ceiling Crisis Can Be Averted Only by Muddling Through

As the federal government draws closer every day to an unprecedented crisis over the debt ceiling, it's become apparent that averting default will require Joe Biden and Kevin McCarthy to choose a messy solution over the allure of a symbolic partisan victory, as I argue today in my latest piece for Bloomberg Opinion. (The article is also available via the Washington Post.)

Wednesday, September 06, 2017

How Big a Deal Is Trump's Debt Limit Deal?

Today brought the unexpected news that President Trump had reached an agreement with the Democratic congressional leadership (later publicly endorsed by Senate majority leader Mitch McConnell) to pass legislation combining Hurricane Harvey disaster relief with an extension of the debt ceiling until December 15 and a continuing resolution funding the federal government through the same date. If a bill containing these provisions successfully makes its way through Congress, it will remove the possibility of a government shutdown or default on the national debt for the next three months.

The media immediately formed a consensus that Democratic negotiators had claimed a major achievement at Republican expense. Politico reported that Trump "sided with Democrats . . . relinquishing the GOP's leverage." The Atlantic called the agreement "Trump's Early Christmas Gift to Democrats." Jonathan Swan of Axios even wrote that Trump had "handed Nancy Pelosi and Chuck Schumer the deal of the century."

It's undisputed that Trump indeed quickly accepted Democratic leaders' offer of a three-month debt ceiling extension over his own party's (and Treasury Secretary's) preference for a longer relief period. The conclusion that Trump had betrayed his fellow Republicans was widely shared by both sides on Capitol Hill; frustrated Republican incumbents privately (and in some cases publicly) griped about the president, while jubilant Democrats attempted to control their outward expressions of glee lest they provoke Trump to reconsider his decision.

But did Schumer and Pelosi really pull off the "deal of the century," justifying the multiple expressions of unfettered liberal elation and conservative dissatisfaction that dominated the day's analysis?

The case for why the deal with Trump was a big win for the Democrats and a horrible defeat for the GOP goes something like this: Democrats managed to secure hurricane relief and three more months of government funding without making any policy concessions to conservatives, while simultaneously guaranteeing that another vote on raising the debt ceiling will be required in just three months' time. Because Democratic votes will be needed once again to avoid a potentially calamitous debt default in December, the party will be in good position to make additional policy demands in exchange for its support. Moreover, the need for Congress to spend the last few weeks of 2017 on spending and debt negotiations will complicate Republican ambitions to complete a tax reform plan before the holidays, leaving the party with no major legislative achievements to show for its first full year in power since 2006.

The main problem with this analysis is that it arguably overstates the capacity of both parties—the Republicans today, the Democrats in the future—to leverage government funding and debt ceiling showdowns to extract major policy concessions from the opposition. It's true that some conservatives had planned to hold the debt ceiling hostage in order to force broad-based spending cuts, just as some liberals might now dream of using similar tactics to jam a legislative authorization of DACA through an otherwise reluctant Congress. But we've had enough of these governing crises over the past few years to conclude with some confidence that they are ultimately resolved via bipartisan agreements that more or less preserve the policy status quo. A hypothetical Democratic threat to endanger the credit of the United States over immigration reform wouldn't necessarily have any greater chance of success than the Republicans' misguided 2013 attempt to compel the repeal of Obamacare by shutting down the government.

Whether the Trump-Pelosi-Schumer deal represents a serious blow to tax reform's chances in the current Congress also depends on one's prior estimation of those chances—which were clearly on the wane even before today's news broke. Republicans are not even close to passing the budget resolution that is a necessary procedural precursor to the consideration of their tax reform plan. (Also, they do not, as of yet, have a tax reform plan.) Republicans can even take solace in apparently avoiding a damaging but entirely plausible scenario: a standoff between Trump and Democratic leaders over funding for a border wall that could have led to an indefinite government shutdown, leaving the congressional GOP caught hopelessly in the middle.

But while the policy implications of Wednesday's deal are unclear and possibly quite modest in scope, the political consequences are much more significant. By endorsing the Democrats' offer in negotiations over the stated position of his own party's congressional leaders, Trump humiliated Mitch McConnell and Paul Ryan, further intensifying the war between the president and his nominal allies in Congress that has been steadily progressing all summer. This was no accident. Trump nurtures a lengthening list of grievances with both men and was apparently looking for an opportunity to land a few punches. The GOP thus moves closer to a state of open schism between its executive and legislative wings, and the hopes of last winter that Trump would happily follow the direction of veteran party leaders recede even further into the distance.

Wednesday, August 23, 2017

Success Has Eluded Trump, But He Could Win a Republican Civil War

Amidst all the daily developments during what is usually a slow news month, some of the most consequential are those that indicate a continued deterioration in the relationship between President Trump and Republican leaders in Congress. Just two weeks ago, I described why this tension had emerged and explained that it could lead to a catastrophic governing failure as soon as the end of September, when leaders in both the legislative and executive branches must act to fund the government and raise the federal debt ceiling. Since then, all available signs point to a likely crisis that could well lead to a government shutdown and possibly even a default on the national debt.

The presence of serious conflict between Trump and congressional Republicans, especially Mitch McConnell, is now undeniable. Trump has taken to Twitter on several occasions to blast McConnell—and a few other senators—for failing to pass health care reform through the Senate and for refusing to abolish the legislative filibuster. Trump has also taken aim at Arizona senator Jeff Flake, who did vote for Obamacare repeal but wrote a book critical of Trump, implicitly endorsing his Republican primary challenger in 2018. Last night in Arizona, Trump make derogatory references to both Flake and John McCain while suggesting that he would be willing to shut down the government this fall if Congress did not approve funding for his proposed wall along the Mexican border. It doesn't help matters that Trump is also furious at congressional Republicans for supporting sanctions against Russia and declining to defend him on the issue.

Republicans in Congress are striking back, albeit more indirectly. Several recent news stories, full of juicy quotes from (mostly) anonymous members and staff, have chronicled widespread anger and frustration with the president on Capitol Hill. A New York Times piece clearly sourced from leaks by McConnell aides portrays the majority leader as doubting Trump's fitness for the presidency.

This is a battle of personalities, but it's also much more than that. Although the Trump presidency is barely seven months old, it's already clear that much of what both Trump and congressional Republicans promised to do in office is probably not going to happen. We are quickly moving to the stage at which the pursuit of success gives way to the assignment of blame for failure—especially since the incumbent president is not known for his patience, grasp of the legislative process, or eagerness to accept responsibility.

Trump may not get the ACA repeal bill or border wall that he demands, but he could still taste success—if he chooses to redefine success as winning a civil war within the Republican Party. Wherever one's own sympathies might lie in such a battle, Trump simply holds heavier artillery and superior field position:

1. Neither Trump nor Congress is particularly well-liked these days, but Trump is much more popular within the GOP. Trump's job approval among Republicans sits at about 80 percent, depending on the poll. McConnell's favorability is closer to 40 percent among Republicans, and Congress as a whole has dropped below 20 percent.

2. Trump will enjoy the support of most influential conservative media sources and personalities in any fight with Congress over health care, taxes, or the border wall, including Rush Limbaugh, Sean Hannity, Tucker Carlson, Fox and Friends, and Breitbart—where ex-White House chief strategist Steve Bannon has settled to wage "war" on people both inside and outside the Trump administration whom he views as impeding his favored ethno-nationalist policy agenda. The congressional GOP will have conservative print publications like National Review, Commentary, and the Wall Street Journal editorial page on its side, but it's simply not an even match.

3. Trump has a louder mouthpiece and is more willing to use it aggressively. He employs Twitter and public addresses to hammer away at members of Congress, often by name, with contemptuous mockery. Many Republicans are willing to say dismissive or nasty things about Trump on background to reporters, but few will risk getting into a public war of words with the president. Trump is also less likely than his opponents to be constrained by the facts, which also offers him certain rhetorical advantages.

4. Even if Trump doesn't achieve passage of his legislative agenda, he can use his executive powers to claim other accomplishments, however modest they may be. Whereas a congressional majority that doesn't produce legislation gives its incumbents very little to run on in the next election—which, for the House and one-third of the Senate, is only a year away.

5. For all his bluster, Trump has a point when he notes that congressional Republicans have been making big promises for years about health care, taxes, and immigration. While Republicans accurately respond that the Trump administration has proven unhelpful on both the politics and policy front in developing legislative alternatives, the truth remains that the internal problems roiling the congressional GOP had appeared years before Trump came along and cannot be principally blamed on the current administration.

Because Trump hates looking "weak" more than just about anything, it's probably only a matter of time before he picks even more serious fights within the party. Such behavior would undoubtedly be counterproductive to the achievement of legislative goals, but Trump acts emotionally rather than strategically—and besides, some of those goals were unrealistic in any case. Forcing a government shutdown, knocking off a few Republican incumbents in party primaries, or even toppling a congressional leader or two might give him a hint of the pleasure that has so visibly eluded him so far in office. But it would also turn the Republican Party into an open battlefield.


Wednesday, August 09, 2017

Trump's War with Congress Is Just Getting Started

How many Republican members of Congress are still wearing their Donald Trump socks?

When House and Senate Republicans held a policy retreat in Philadelphia during Trump's first week in office, one of the items in each member's gift bag was a pair of socks decorated with the new president's face. The socks, reported Politico, were claimed to be "a huge hit."

The retreat itself occurred amidst an atmosphere of palpable partisan optimism. House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell unveiled ambitious plans for the coming session of Congress. Legislation repealing the Affordable Care Act would be on the president's desk by March, according to the leaders' proposed calendar, with a tax reform agreement following by the August recess—at which point the first phase of funding for Trump's promised southern border wall would be in place and a major infrastructure package would be "moving along." Trump himself made an appearance at the retreat, promising his fellow Republicans that "we're actually going to sign the [bills] that you're writing; you're not wasting your time" and vowing that "this Congress is going to be the busiest Congress we've had in decades, maybe ever."

We have now reached the August recess, and the only major piece of legislation that Congress has enacted this year is a bipartisan bill tightening the sanctions on Russia (as punishment for its record of meddling in the 2016 election on behalf of the Republican presidential ticket) that Trump grumpily signed rather than risk the embarrassment of having his veto overridden.

That Republican hopes for a historically prolific congressional session have gone unfulfilled is hardly shocking in itself. It's common for presidents and other party leaders to entertain visions of legislative productivity that dissipate upon exposure to the political and procedural obstacles to achieving major policy change within the American system of government. Though there's little chance of the entire Republican wish list ultimately becoming law, plenty of time remains in the next 18 months for selected elements of the party platform to make their way through the House and Senate.

But salvaging what's left of the GOP's legislative agenda will still require extensive collaboration and cooperation between Congress and the White House. Unfortunately for Republicans, this relationship has been deteriorating rapidly over the past few weeks. The failure of health care reform in the Senate prompted a series of critical remarks from Trump, who also unsuccessfully demanded the abolition of the legislative filibuster. During the Senate health care debate, a member of Trump's cabinet threatened Senator Lisa Murkowski with retribution against her home state of Alaska if she did not support the ACA repeal plan backed by the White House. (She cast a decisive vote against it.)

Republican members of Congress have likewise become more open in distancing themselves from the president. Senate Judiciary Committee chair Chuck Grassley publicly warned Trump not to fire Attorney General Jeff Sessions, Senate Finance Committee chair Orrin Hatch rejected Trump's demands that Republicans continue to work on hammering out a health care bill, and Senator Jeff Flake published a book containing sharp criticism of Trump. On Monday, Mitch McConnell blamed Trump for creating unrealistic expectations about the ability of Congress to quickly deliver significant legislative achievements ahead of "artificial deadlines"—even though McConnell himself had promised swift action on the party agenda during the Republican retreat in January. McConnell's remarks, in turn, provoked sharp counterattacks from White House aide Dan Scavino and Trump loyalist Sean Hannity.

Though Trump critics wish for an even less deferential Congress, this is still a very unusual degree of tension between two branches under control of the same party—especially since the Trump presidency is barely six months old. And it's about to get worse.

Before Congress can even think about making major progress on issues like tax reform, it needs to raise the federal debt ceiling and pass at least a temporary resolution funding the government past the end of the current fiscal year (September 30) while it works out a longer-term appropriations plan. Both tasks will require bipartisan agreement. Democratic support will be necessary in the Senate to avert a filibuster, and may well be needed in the House as well to compensate for what may be plentiful nay votes from the Republican side of the aisle on one or both measures.

There will be no "big wins" for Trump in the near future. The best-case scenario for resolving these responsibilities simply keeps the federal buildings open and the debt serviced with a minimum amount of legislative disarray; Democrats have considerable leverage and no reason to support legislation that contains a major rightward policy shift on any issue. In the worst-case outcome, the process falls apart and the government shuts down or defaults on its obligations—both with potentially disastrous consequences for both the president and the ruling party in Congress.

This is also very treacherous ground for Paul Ryan. His predecessor John Boehner was deposed from the speakership by rebellious conservative purists in large part because he regularly found it necessary to push must-pass legislation through the House with more Democratic than Republican votes. Ryan is similarly at risk of sustaining considerable damage in the upcoming debt ceiling fight, with one anonymous Republican House member telling the Huffington Post that legislation raising the debt ceiling without delivering on other conservative priorities would mark "the beginning of the end of the Ryan speakership," even though such a proposal might be the only bill that could pass the Senate and avert a governing catastrophe.

At least Boehner, for all his problems, didn't have Trump to deal with. About the best that Ryan and McConnell can hope for is that they can guide bipartisan bills through Congress before the clock runs out and that Trump will sign them while merely making a few snide remarks. But what if Trump sides with the hard-liners demanding large spending cuts, or regulatory repeal, or funding for his border wall? What if he fails to come to the defense of party leaders facing a mutiny from within their ranks? What if he vetoes a bill sent to his desk, plunging the nation into a crisis?

Normally, there is a perception of mutual linked fate that prevents a president and his congressional party from letting their differences become too vast or too public. But Trump is an inexperienced and impatient president who is incapable of taking responsibility for setbacks. He is getting to a point in his presidency where he's going to need an answer for the question of why he hasn't delivered on all of his big, beautiful promises. Congress will be an irresistible scapegoat for his failures; the only uncertainty is whether the smooth functioning of the federal government is a casualty of the resulting crossfire.