from Zero Hedge
As expected, the Senate is set to kick the can down the road on funding the government past a Thursday night deadline. According to Senate Majority Leader Chuck Schumer (D-NY), the chamber will vote today or tomorrow on a “clean” continuing resolution (CR) which will avert a shutdown until December 3.
That said, as Goldman’s Alec Phillips notes, by separating the continuing resolution from a debt ceiling vote, Democrats are giving up leverage in the hopes of passing both at the same time.
The decision to set the CR deadline for Dec. 3 lowers the risks around the debt limit slightly compared to the alternative, which would have been a mid-Oct. deadline. In light of the Treasury’s projection that the debt limit will need to be raised by Oct. 18, the two deadlines are now separate and congressional Democrats cannot use the next spending deadline to try to force a bipartisan debt vote to suspend the debt limit.