Janet Yellen Weighs In on the Debt Limit

Punchbowl News: “Treasury Secretary Janet Yellen will tell Congress today to lift the debt limit using ‘regular order,’ which means not through a reconciliation bill, according to a statement Yellen will release later today.”

“This is a big deal because Senate Democrats are going to release their $3.5 trillion budget resolution this morning, and if they want to lift the debt limit using this parliamentary procedure, they would have to include instructions for that in the resolution. A reconciliation bill can’t be filibustered and requires only a simple majority to pass, which makes it an attractive vehicle to lift the nation’s borrowing limit.”

Playbook: “Until now the Biden administration hasn’t taken a position. Yellen’s statement is a clear sign that the reconciliation bill, which will be released later today, will not address the debt ceiling and that the two parties are headed toward a showdown, likely in late September, when Democrats may add a debt ceiling increase to a short-term funding measure needed to avert a government shutdown.”