Schumer could reveal deal on lifting debt limit this week, analysts say

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After October’s standoff over the debt ceiling, there have been signs that this month might provide smoother sailing.

Senate Majority Leader Chuck Schumer might be able to announce an agreement this week that will raise the federal borrowing limit and ensure the U.S. government avoids defaulting, according to analysts.

“Another option is to use the National Defense Authorization Act to lay out an expedited process for Democrats to raise the debt ceiling via reconciliation. Our expectation is that Schumer will announce some bipartisan path on the debt ceiling this week.” “A debt limit measure is also being eyed for potential inclusion in the NDAA,” Mills said in a note. “While chances are mixed for it to advance as part of the defense package, a combined bill would be another major breakthrough for the year-end agenda. This would leave Senate confirmations and the finalization of the BBB bill as the remaining items , which may play positively into the chances of BBB being finalized.

The Congressional Budget Office has estimated the Treasury would most likely run out of cash before the end of December if the debt ceiling isn’t raised, while the Bipartisan Policy Center has projected that the government is most likely to have insufficient cash to meet all its financial obligations sometime between Dec. 21 and Jan. 28.

 

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