While neither side is indicating any room for negotiation, it is being widely reported that a Fiscal Year 2014 appropriations bill and the debt ceiling increase will be taken up together. The anticipated showdown is expected to intensify in the days leading up to October 17, the date when the U.S. is projected to begin defaulting on its debts. Many economists believe it could set in motion events that would have a devastating impact on the economy as interest rates soar, stock values plummet, and employers stop hiring. Congressional Democrats and President Obama are sticking with their vow to not negotiate other funding and tax issues as part of any proposal to raise the debt ceiling. House Republicans, meanwhile, continue to discuss a number of provisions to attach to a debt-ceiling hike, including a one-year delay of the ACA’s requirement that individuals purchase health insurance or pay a fine.
Read more about other possible provisions tied to the raising of the debt ceiling at the Center for Budget and Policy Priorities website.