Government Shutdown Continues; Debt Limit to be Reached Next Week

Posted on: October 11th, 2013 by NADO Admin

As the government shutdown enters its eleventh day, Congress and the White House have begun discussions on a compromise to reopen the government and avoid a default on the nation’s debt limit. President Obama and Congressional leaders held a meeting on Thursday, October 10 but no deal was reached. The government is estimated to hit its borrowing limit by October 17. This week Senate leadership introduced a “clean” debt limit bill that would allow the U.S. Treasury to borrow whatever it needs to cover the government’s obligations through December 31, 2014. Democrats, who control 54 votes in the Senate, need at least six Republicans to reach the 60 votes needed to overcome a filibuster. House leadership has proposed a plan that would increase the debt limit for six weeks (until November 22) in exchange for negotiations over reopening the government and broader budget reforms. In addition, Senator Susan Collins (R-ME) has floated a proposal that would reopen the government, raise the debt ceiling, repeal or delay the Affordable Care Act’s medical device tax, and give federal agencies flexibility to deal with automatic spending cuts under sequestration over the next two years. NADO staff will be closely monitoring developments on both ending the government shutdown and raising the debt limit.

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