The deal is done. The Senate needs to vote. We hope to vote tonight to pass the deal.
Confusion prevailed throughout the day over the timing of voting on the deal. But, yes, it looks like we will avert this credit limit crisis.
I want to talk about what’s specifically in the deal. This is a dollar figure. The Senate will vote tonight to raise the debt limit to $480 billion. This sounds like strange money to most of us. what does this mean? This means that the loan limit will be removed at least by December 3.
But because the Treasury has some extraordinary measures, as they’re called, that they can use, there’s some wiggle room. It can happen after 4th December. Basically, it buys about two months for Congress to act again and work out a more permanent solution than expected.
Now, timing is important because Republicans say they offered the deal to give Democrats enough time to go through a full reconciliation process, which is a 50-vote process. That’s how Republicans want it done. Democrats, again, say they don’t want to do it this way. So that problem still exists.
And we’ll talk more about that in maybe a month and a half.