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Pelosi Says Congress Should Raise Federal Debt Limit This Month

House Speaker Nancy Pelosi told reporters she’s “convinced” that Congress should raise the U.S. debt ceiling this month.

Pelosi Says Congress Should Raise Federal Debt Limit This Month
Nancy Pelosi speaks during a news conference on Capitol Hill in Washington, D.C., U.S. (Photographer: Zach Gibson/Bloomberg)

(Bloomberg) -- House Speaker Nancy Pelosi told reporters she’s “convinced” that Congress should raise the U.S. debt ceiling this month, before lawmakers leave for a six-week recess.

Her declaration came after speaking with Treasury Secretary Steven Mnuchin by phone Thursday, just hours after she told reporters that the timing for Congress to act on the debt limit was uncertain. The California Democrat said she still wants to tie the debt limit to a broader agreement on overall spending levels.

“I am personally convinced that we should act on the caps and the debt ceiling prior to recess,” Pelosi said. “I’m realistic.”

Pelosi Says Congress Should Raise Federal Debt Limit This Month

Democrats and Republicans are negotiating whether they can attach the debt ceiling bill to a two-year budget deal that would avoid an automatic $126 billion cut at the end of the calendar year. Such an agreement would help the government avoid another shutdown when funding runs out Oct. 1.

Pelosi said she and Mnuchin “have not exhausted our conversations” and will continue talking. The two spoke by phone twice on Thursday and agreed to speak again Friday morning, according to a Pelosi aide.

Congress’s six-week recess is scheduled to begin after July 26.

Mnuchin said Wednesday he has asked lawmakers not to leave a debt ceiling solution to September, which could risk a government shutdown when the new fiscal year begins Oct. 1.

This week the Bipartisan Policy Center, an independent think tank, estimated that there is a “significant risk” on a payments default in early September.

“There were some outside numbers about the debt ceiling and that’s something we’re having discussions about, updating the numbers and potentially the need to do something before everybody leaves,” Mnuchin told reporters Wednesday after meeting with Senate Majority Leader Mitch McConnell and House Minority Leader Kevin McCarthy.

McCarthy on Thursday also urged the House to act on the debt ceiling before August.

House Majority Leader Steny Hoyer said the White House should offer new spending levels for the budget negotiation happening alongside the debt limit talks. So far the Trump administration has suggested keeping spending levels for the next fiscal year at current levels.

“It’s about whether the administration will come up with some reasonable numbers that are compromises,” Hoyer told reporters.

To contact the reporter on this story: Erik Wasson in Washington at ewasson@bloomberg.net

To contact the editors responsible for this story: Kevin Whitelaw at kwhitelaw@bloomberg.net, Justin Blum, John Harney

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