(Bloomberg) -- Congressional leaders will seek to lift the U.S. debt limit in February by attaching a measure to a government funding bill, a House Republican familiar with the talks said Thursday.
The ceiling on federal borrowing had been suspended in September but snapped back into place on Dec. 8. The Congressional Budget Office estimated in November that the Treasury could use extraordinary measures to extend the deadline through late March or early April.
Congressional leaders are attempting to reach a budget deal this month to clear the way for an omnibus spending bill in February that will fund the government for the rest of the fiscal year through September. Current funding ends after Jan. 19, and lawmakers may have to seek yet another stopgap funding bill to avert an election-year shutdown.
The negotiators are trying to reach a spending deal that would increase the $1.2 trillion federal discretionary budget by about $100 billion this year and a comparable amount next year. Republicans want to increase defense spending -- which accounts for almost half of the discretionary budget -- by $54 billion this year and non-defense programs by $37 billion. Democrats want equal increases in both.
Senate Majority Leader Mitch McConnell of Kentucky said Thursday on the Senate floor that lawmakers are making progress on a deal. He urged Democrats to drop demands for parity increases and to attach immigration changes to the January funding bill. Minority Leader Chuck Schumer of New York said he wants a "global" agreement that includes immigration and parity increases.
Congress was unable to address the budget caps and various other issues before the end of 2017 and punted by passing two temporary spending measures. Even if the leaders reach a deal to lift the spending limits in the next two weeks, they likely won't have enough time to write all the spending items to carry the government through the rest of the fiscal year.
Republicans control both chambers, but Democrats have leverage because any resolution will need at least 60 votes to get through the Senate.
--With assistance from Anna Edgerton and Laura Litvan
To contact the reporters on this story: Billy House in Washington at bhouse5@bloomberg.net, Erik Wasson in Washington at ewasson@bloomberg.net.
To contact the editors responsible for this story: Joe Sobczyk at jsobczyk@bloomberg.net, Laurie Asséo, Justin Blum
©2018 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
