Pelosi: No debt increase until spending limits are raised | WHAT REALLY HAPPENED


Pelosi: No debt increase until spending limits are raised

Speaker Nancy Pelosi said Thursday that the Democratic-controlled House won’t pass must-do legislation to increase the government’s borrowing cap until the Trump administration agrees to boost spending limits on domestic programs.

The California Democrat said she’ll agree to increase the so-called debt ceiling, which is needed to avoid a market-cratering default on U.S. government obligations this fall. But she says she’ll do so only after President Donald Trump agrees to lift tight “caps” that threaten both the Pentagon and domestic agencies with sweeping budget cuts.

“When we lift the caps then we can talk about lifting the debt ceiling — that would have to come second or simultaneous, but not before lifting the caps,” Pelosi told reporters.

Treasury Secretary Steven Mnuchin, who is leading negotiations for the administration instead of hard-liners like acting White House budget chief Russell Vought, shares Pelosi’s sentiments, though his top priority is to increase the borrowing cap.

“If we reach a caps deal, the debt ceiling has to be included,” Mnuchin said Wednesday.

Tags:

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA