U.S. Risks Fiscal Cliff in Fall Amid Partisanship on Debt

Senate Democrats leave out debt-limit hike from budget bill
U.S. seen exhausting measures averting payment default in fall

Mitch McConnell
Photographer: Al Drago/Bloomberg

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By Steven T. Dennis, Laura Davison, and Mike Dorning

August 9, 2021 at 2:48 PM UTC

Updated on

August 9, 2021 at 5:01 PM UTC

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Risks of a major disruption in U.S. government spending and payments this fall escalated sharply on Monday as Democrats signaled they’d force Republicans into a showdown on the federal debt limit.

Senate Democrats decided against including an increase or suspension in the statutory debt ceiling in the text of a budget blueprint released Monday. The resolution provides for $3.5 trillion of spending that would enact the bulk of President Joe Biden’s economic agenda.