Navigating the Debt Ceiling Crisis

Chuck Schumer and Senate Democrats continue to catch hell from their own voters for caving in the government shutdown fight. But in the coming days, perhaps sooner than most people are expecting, Congress will have to increase the debt limit. And once again, Democrats will have to decide whether and how to use their votes to rein in an out-of-control GOP.

After some quick observations about the Trump administration’s snowballing Signal Scandal, Matt and Brian discuss and explain:

* What happens, as far as we know, if the U.S. government runs out of borrowing authority;

* Whether DOGE has made a default crisis more imminent by crippling the IRS (and, thus, revenue collection);

* How Democratic leaders should seize control of this story now, and make their demands clear, before the deadline is at hand and Republicans beat them to the punch;

* Why articulating their demands up front might help them avoid the trap of caving to Republican pressure.

Then, behind the paywall, what should those demands be? It isn’t certain that Republicans will need Democratic votes to increase the debt limit. But if they do, should Democrats use their leverage to stave off the Republican threat to Medicaid? Or would they better off focusing on the issues like DOGE and Trump administration lawbreaking that were at issue in the aborted shutdown fight?

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Further reading:

* How the Trump administration texted Jeffrey Goldberg its war plans.

* Brian’s 19 thoughts on the Signal scandal.

* Donate to Susan Crawford.

* Join the Tesla Takedown movement.

* Elon Musk and the payment system.