Congress reaches deal to avert government shutdown
Federal funding extended through December 3, Biden agenda less certain - NBC's Alice Barr reports
WASHINGTON, D.C. (KYMA, KECY/NBC News) - With just hours to go before a midnight shutdown deadline, lawmakers came together around a short-term save to fund the government through December.
"That will eliminate the possibility of a government shutdown tonight," said Senate Majority Leader Chuck Schumer, (D-NY).
But the agreement does not stave off another looming crisis - a potential default on the nation's debt.
"It would be catastrophic for the economy," said U.S. Treasury Secretary Janet Yellen.
That's if Congress doesn't raise the country's borrowing limit by October 18th. House Democrats have already approved a measure to do that.
"The bill is passed."
But it's unclear if the Senate will do the same. Republicans are trying to force Democrats to increase the debt limit alone, in protest of their multi-trillion dollar spending plans.
"What they want to do is restructure and transform America," said House Minority Leader Kevin McCarthy, (R-Calif.).
The Democrat's agenda is now in real jeopardy.
"We are proceeding in a very positive way," said Speaker of the House Nancy Pelosi, (D-Calif.).
Speaker Pelosi still planning to hold a vote Thursday on the trillion dollars infrastructure bill that passed the Senate with bipartisan support. But opposition from progressive Democrats is mounting, as a deal remains elusive on a larger package. It funnels up to $3.5 trillion into healthcare, education, and climate programs.
"Look, we are in the same place we've always been. We put out an offer for 3.5 trillion," said Rep. Pramila Jayapal, (D-Wash.), the chair of the Congressional Progressive Caucus.
Key moderate Senator Joe Manchin revealing publicly Thursday his topline number is much lower - $1.5 trillion.
"I think there's many ways to get where they want to -- just not everything at one time," said Sen. Manchin.
A high-stakes standoff within the Democratic party, with President Biden's top legislative priorities hanging in the balance.
Looking ahead to the upcoming debt ceiling fight, Treasury Secretary Yellen said going into default would mean an interruption in Social Security payments, and paychecks for soldiers, as well as a likely spike in interest rates.
