August 30 2013 Copyright (c) 2013 Business Research Services Inc. 301-229-5561 All rights reserved.

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  • Coming this fall: Avoiding shutdown for debt-limit fight?

    After weeks of GOP lawmaker threats to shut down the government to block “Obamacare” this fall, Republican leaders are attempting new tactics.

    As of Aug. 23, 80 House members had agreed to support a strategy of the conservative Tea Party movement to use the threat of government shutdown as leverage to defund the Affordable Care Act passed by Congress three years ago.

    However, House Speaker John Boehner, R-OH, is pushing for a temporary spending bill that would avert a shutdown on Oct. 1, according to Reuters. He and other GOP leaders have said they are concerned about their party being blamed for a federal shutdown, recalling the negative repercussions of the 1995 and 1996 shutdown.

    Boehner and other GOP leaders also are pressing for deeper budget cuts in exchange for raising the nation’s debt ceiling this fall.

    The nation’s ability to borrow money is expected to hit the ceiling in mid-October, Treasury Secretary Jack Lew said on Aug. 26.

    By law, Congress must authorize increases in the nation’s debt ceiling. Doing so does not authorize new spending.

    Obama is seeking an increase in the debt limit with no conditions attached. Congressional Republicans and Boehner are seeking spending cuts in exchange for raising the debt limit.

    Congress’ dramatic delay in raising in the debt limit in 2011 rattled financial markets. It also raised borrowing costs for the U.S.Treasury by about $1.3 billion, according to the Government Accountability Office.


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