October 21, 2021

US House approves bill to temporarily increase debt ceiling, default default

Issued:

The Democratic-controlled U.S. House of Representatives on Tuesday gave final approval to legislation that temporarily raised the government’s borrowing limit to $ 28.9 trillion, extending the debt default deadline to December only. ۔

Democrats, who control the House tightly, maintained party discipline to go through strict discipline, raising the $ 480 billion debt limit to 219-206. The vote was on party lines, with Democrats saying yes and Republicans saying no.

President Joe Biden The move is expected to be signed into law before October 18, when the Treasury Department estimates it will no longer be able to repay the nation’s debts without congressional action.

The passing of the house allayed those fears United States – The world’s largest economy – will default for the first time, but the temporary expansion set the stage for a constant battle between the two sides.

“We have a temporary crisis warning before next week’s deadline, but in December, members of Congress will have to put the party in front of the country and stop defaulting,” said Richard Neal, chairman of the House and Men’s Committee. Have to choose. “

Republicans insist Democrats should take sole responsibility for raising the debt ceiling because their party wants to spend trillions of dollars to expand social programs and tackle climate change.

Democrats say increasing credit authority is needed to meet the costs of tax cuts and spending programs during the previous Republican presidency. Donald TrumpAdministration, backed by Republicans in Congress.

Senate Republican leader Mitch McConnell wrote to Biden on Friday that he would not work with Democrats on raising another debt limit. After the Senate vote, Republican leader Trump sharply criticized McConnell.

“I will not be a party to future efforts to reduce the consequences of democratic mismanagement,” McConnell wrote to Biden, adding that another “broad spending bill” would hurt Americans and help China.

Legislators only have until December 3 to legislate to fund the government and stop the shutdown.

More partisan fighting is ahead.

House Speaker Nancy Pelosi told reporters Tuesday that she hopes the debt ceiling issue can be resolved bilaterally.

Pelosi said a Democratic proposal that allows the Treasury Department to remove the debt limit has the potential for Congress to do so.

He also reiterated that Democrats do not want to use the so-called reconciliation method to push the limits.

The peace deal would allow Democrats to raise the threshold by 51 votes instead of the required 60 under the Senate’s Flubster rule if Republicans do not cooperate.

Last week’s vote to raise the Senate threshold – which was the norm before the current bias – turned into a tussle.

Republicans have linked the move to Biden’s goal of enacting multi-billion-dollar legislation to strengthen infrastructure and social services while fighting climate change.

Pelosi said he is hopeful Democrats can make changes by October 31 to reduce the cost of their social policy plans.

In another sign that a compromise was possible, the Progressive Democrats told reporters that most of them wanted to put all the proposed programs on a multi-billion dollar bill, while reducing the time period to reduce its overall cost. Are

Biden has proposed a spending target of 2 2 trillion instead of the initial target of $ 3.5 trillion.

Pelosi said she would not legislate if she could not pass the Senate, where moderate Democrats Joe Manchin and Kirsten Cinema both say they cannot support the 3.5 3.5 trillion cost.

The months-long battle over debt is closely linked to the November 2022 congressional election, when Republicans are seeking a majority in both the House and Senate.

Democratic lawmakers fear that a Republican boycott of future efforts to raise the debt limit could expose them to a political offensive next year that would allow Democrats to ignore financial mismanagement and ballooning debt. Accuses

But Democrats, in turn, accused the Republicans of allowing the country to default on its debts in order to gain political points.

During the Trump administration, the debt ceiling was tripled with the support of Democrats, despite opposition from Republicans who pushed the Southwest border to keep immigrants out of the 2017 tax-cutting legislation and Trump’s priorities. Increased government debt, such as the construction of the wall.

(Reuters)

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