Mnuchin: Combine Harvey aid, debt limit increase

Associated Press

WASHINGTON

Treasury Secretary Steven Mnuchin on Sunday called on Congress to combine a $7.9 billion disaster-relief package for Harvey with an increase in the nation’s borrowing limit, saying it was time to “put politics aside” so storm victims in Texas can get the help they need.

“The president and I believe that it should be tied to the Harvey funding. Our first priority is to make sure that the state gets money,” he said. “It is critical, and to do that, we need to make sure we raise the debt limit.”

President Donald Trump visited storm-ravaged areas in Texas on Saturday, expressing hope for speedy congressional action on relief aid.

But some House conservatives have said directly pairing it with an increase in the debt limit would be a “terrible idea” that sends the wrong message on overall government spending.

Trump plans to meet with congressional leaders from both parties this week as lawmakers return to Washington after their summer recess.

The government’s cash reserves are running low because the debt limit has actually already been reached, and the Treasury Department is using various accounting measures to cover expenses.

Mnuchin originally had said that Congress would need to raise the $19.9 trillion borrowing limit by Sept. 29 to avoid a catastrophic default on the debt, allowing the government to continue borrowing money to pay bills such as Social Security and interest.

But on Sunday, he said that deadline had moved up due to unexpected new spending on Harvey.