GOP Set to Follow Through on Deficit Reduction

The strong victory that House Republicans are expected to register in elections Tuesday will give them a chance to act on their plans to cut the bulging budget deficit. And there’s always the chance that an impasse between Congress and President Barack Obama could lead to a government shutdown, Politico reports.

When the new Congress convenes in January, Republicans and Democrats will consider a routine Treasury request to increase the amount the federal government can borrow, formally known as the debt limit.

Obama must convince Congress to lift the limit, or risk a government default on its debt. Republicans, who are serious about cutting the deficit, won’t go along with the president unless he’ll promise to reduce spending. That makes a shutdown possible.

“It would be frustrating to many, many people and it’s not a great thing.” Utah Republican Senate nominee Mike Lee tells NPR. “At the same time, it’s not something that we can rule out.”