Debt Ceiling 2023: Could a Discharge Petition Work?

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KEY POINTS

  • A discharge petition could allow House Democrats to force a debt ceiling-raising vote.
  • The odds on this legislative work-around aren't as long as you might think -- a closely divided House means only a few defectors could swing the balance.

Since 1931, only about 1 in 12 petitions have succeeded.

As the country continues to barrel towards an economic catastrophe, some House Democrats are working on a plan to raise the debt ceiling without Republican leadership's go-ahead. The proposal, a so-called discharge petition, would require only a handful of GOP defectors to be effective. Could the latest scheme in this year's fiscal showdown actually help the Treasury avoid default?

What's going on in Washington?

Financial drama is brewing in Washington following the Treasury's announcement that it hit the debt ceiling on Jan. 19. The Treasury is responsible for paying the financial obligations of the United States government, including making payments on government bonds and distributing Social Security and Medicare benefits. The federal government, which has run a deficit since 2001, will be unable to honor its obligations once the Treasury's short-term "extraordinary measures" run dry in June. Such an event would have devastating consequences for the personal finances of millions of Americans.

Congress has the sole power to borrow money on behalf of the federal government, and so must pass a bill raising the debt ceiling or risk a Treasury default. While the Democratic majority in the Senate is expected to authorize a debt-ceiling increase, Republicans holding a majority in the House may be a key hold-out.

Republican lawmakers are demanding significant cuts to government spending in exchange for a debt limit-raising vote. The circumstances have created a standoff between President Biden, seeking a "clean," no-strings attached resolution, and Republican leadership.

What is a discharge petition?

Hundreds of years of policymaking have left a legacy dictating how, when, and by whom certain functions of government are performed. However, occasionally conditions are right, and legislators desperate enough, to institute certain lesser-known maneuvers.

Included in the many rights and privileges of the Speakership, which Republicans ascended early this year, is the ability to kill bills in committee. If a certain bill is unpopular among the House's majority party, the Speaker may refer it to a committee, the chair of which may never place it on the agenda, effectively preventing a vote on the floor. Currently, House Speaker Kevin McCarthy could use this authority to neutralize any so-called "clean" debt ceiling-raising bills that do not have the approval of Republican leadership.

A successful discharge petition could change all of that. The discharge petition provides an off-ramp to legislation in committee limbo, allowing bills to be "discharged" or released from a committee's custody and instead placed on the floor for a vote. The override is easier said than done however, requiring an absolute majority of votes, 218 in today's House.

Could it actually work?

In many Congresses, that would be the end of the story. The House minority Democrats could never whip up enough votes to make a discharge petition viable. However, in the 118th House of Representatives, the Republicans have only a narrow majority -- and a few potential dissenters.

As Representative Brian Fitzpatrick (R-PA) observed, only five GOP lawmakers would have to endorse a discharge petition for it to succeed. And for the Republicans who have voiced concern over the debt ceiling, the chance to pass a more moderate bill than what is eventually put forth by GOP leadership could be the push they need to cross the aisle.

Since 1931, of 563 discharge petitions filed, only two have ultimately resulted in a passed law. That said, the political pressures on House Republicans might be the catalyst needed for such a proposal to work today. If we see a discharge petition at all, it likely won't be until late spring. Until then, Americans will have to wait and watch as talks between the House and White House continue.

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