(Bloomberg) — President Donald Trump and key Senate Republicans are still grasping for a solution to the US government closing in on breaching its legal borrowing limit following a White House meeting Thursday.
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The senators, including Majority Leader John Thune and Finance Chairman Mike Crapo, discussed whether to increase the debt ceiling in the tax-and-spending package that Republicans intend to pass this year. Most analysts believe the US will default on a payment obligation sometime this summer without a debt ceiling increase.
“There wasn’t a decision made,” Thune said after the meeting.
The talks Thursday played out against the backdrop of a looming Saturday government shutdown amid a stalemate in the Senate.
Trump has been eager for Congress to approve funding through the Sept. 30 end of the federal fiscal year so he can pivot to his broader legislative agenda. By late Thursday, however, shutdown chances had ebbed.
The House has moved to increase the debt ceiling as part of its tax proposal, using a vehicle that will require only Republican votes. But Thune has said he wants to handle the debt ceiling separately, to put Democrats on the record supporting the increase.
During the meeting, Trump reiterated that he favored making tax cuts permanent, Thune said.
Senator Ron Johnson, a Wisconsin Republican, said a cap on the corporate state and local tax deduction was discussed during the meeting as a way to help pay for the package. No decisions were made on that, however.
The gathering unfolded as the Senate has stalled on Trump’s top legislative priority, a giant package of tax cuts. The House last month passed a budget outline for the bill, which also included cuts to entitlement programs paired with a boost to border security and military spending, but the Senate has yet to act on it.
Senator Chuck Grassley expressed frustration after the White House meeting. “It was all talk talk talk,” the Iowa Republican said. “Just like the last 10 weeks.”
Thom Tillis of North Carolina said the president told the senators that he wanted the debt ceiling paired with the tax package, which would bypass the Democratic minority.
“I think we need to tackle it and I think the president agrees with that,” Tillis said. He added that there were 11 Senate Republicans who have never voted for a debt ceiling increase, and spending cuts must be addressed. Specific proposals were discussed with Trump, he said.
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