I spoke to NBC News‘ Sahil Kapur about the various scenarios that may play out as Congress and the White House seek to resolve the debt limit impasse.
PATH #3: Tie debt limit to government funding
Some congressional aides believe the way out is to attach a debt limit extension to a bipartisan government funding bill, which is due by Sept. 30 to prevent a shutdown.
“The key to that would be opening up budget negotiations that Republicans will see as a victory in and of itself, while Biden can maintain his debt limit stance,” Republican strategist and lobbyist Liam Donovan said. “It may be prudent to pass a short-term debt limit increase to put more time on the clock, show good faith and sync the deadline up with that of government funding. Short of that sort of orderly engagement, it will take coming right up to the edge to determine who blinks.”
Read the full piece here.