Senate Republicans consider increasing debt limit in bill

Senate Republicans are considering adding an increase to the debt ceiling in their major spending bill. Senate Majority Leader John Thune has indicated he is now open to this idea, shifting from a previous reluctance. The change comes as the Trump administration pushes for a compromise with the House. Some GOP senators, like Todd Young and Jim Justice, have also expressed their willingness to raise the debt limit, but they want spending cuts to accompany it. Discussions are becoming more focused, with plans to resolve differences before a Senate vote that could happen in early April. The Congressional Budget Office warns that Congress must act on the debt ceiling by August or September, or the U.S. risks default. This urgency may encourage lawmakers to support the proposed debt limit hike as part of a reconciliation bill, which requires only a simple majority to pass. However, challenges remain. Some Republicans are wary of cutting popular programs like Medicare and Medicaid. Additionally, extending Trump’s tax cuts without budget offsets could create complications. Republicans are exploring new accounting methods, but they need a budget resolution in place to proceed.