The Debt Ceiling Decision Tree
Republicans and Democrats still haven’t hammered out a deal to raise the debt ceiling and avert the financial catastrophe that could accompany a default on the national debt.
House Speaker Kevin McCarthy and President Joe Biden are continuing to negotiate, but the range of potential outcomes goes beyond a default/no default binary. With eight days before the projected “X-date,” here are five possible outcomes.
1. A deal comes together in time.
Democrats and Republicans have been at odds over conditions for raising the debt ceiling since this session of Congress began in January. Democrats wanted a clean debt ceiling hike while Republicans demanded a series of spending cuts. But a divided Congress means a deal will require buy-in from both sides.