In it, but not of it. TPM DC

GOP Gives Up On Obamacare And Keystone Debt Limit Demands

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AP Photo / J. Scott Applewhite

It's a major setback for House Republicans, who have insisted on extracting concessions for raising the country's borrowing limit. They have indicated for weeks that they'll force another hostage standoff, but their efforts to come up with a ransom demand have -- perhaps predictably -- failed.

"When even Rep. [Raul] Labrador is saying that this time Republicans should be honest that they can't win a ransom on the debt limit, it's time for Speaker Boehner to admit defeat and stop playing games with the economy," said a senior Democratic Senate aide.

The country will exhaust its borrowing authority in late February, Treasury Secretary Jack Lew reaffirmed this week, urging Congress to act quickly to raise the debt limit and avert a potentially catastrophic default.

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Sahil Kapur is TPM's senior congressional reporter and Supreme Court correspondent. His articles have been published in the Huffington Post, The Guardian and The New Republic. Email him at sahil@talkingpointsmemo.com and follow him on Twitter at @sahilkapur.