President Obama will reluctantly accept the House Republicans plan to increase the debt limit for only three months according to a new statement of administration policy.
The Administration supports a long-term increase in the debt limit that would increase certainty and economic stability. Although H.R. 325 is a short-term measure and introduces unnecessary complications, needlessly perpetuating uncertainty in the Nation’s fiscal system, the Administration is encouraged that H.R. 325 lifts the immediate threat of default and indicates that congressional Republicans have backed off an insistence on holding the Nation’s economy hostage to extract drastic cuts in Medicare, education, and other programs that middle-class families depend on. For these reasons, the Administration would not oppose a short-term solution to the debt limit and looks forward to continuing to work with both the House and the Senate to increase certainty and stability for the economy.
Obama wanted a clean long term debt limit increase. He will get a short term increase that is only combined with one rather minor condition regarding Congressional pay that might be technically unconstitutional.
It is not exactly what Obama wanted but it is close enough. The GOP did stop demanding the debt limit be paired with spending cuts or policy concessions which was the important sticking point. The GOP folding on that is the important victory for the administration.
The adminstration’s acceptance of this short term increases will likely guaranty a quick passage in the House and the Senate.