WASHINGTON (AP) – Members of the House are headed back to Washington on Tuesday to approve a short-term lift of the country’s debt limit and ensure the federal government can continue to pay its bills in full in December.
The debate is set to end at 5 p.m. ET. See vote in player above.
The $480 billion increase in the country’s borrowing limit was approved by the Senate on a party line vote last week. The House is expected to approve it expeditiously so that President Joe Biden can sign it into law this week. Treasury Secretary Janet Yellen warned that steps to prevent a default on the country’s debt would be finished by Monday, and from that point on, the department would soon be unable to fully meet the government’s financial obligations.
A default would have a huge impact on global financial markets based on US government debt. Regular government payments to Social Security beneficiaries, disabled veterans and active-duty military personnel will also be questioned.
House Majority Leader Steny Hoyer, D-MD, said, “It is serious that our country is placed in this position, but we must take immediate action to address the debt ceiling and ensure that the United States’ full Trust and credit remain intact.” .
But the relief offered by the bill’s passage will be only temporary, forcing Congress to revisit the issue in December — a time when lawmakers are also trying to meet federal spending bills and avoid a damaging government shutdown. Will work for The year-end backlog poses risks for both sides and threatens an upheaval nearing Biden’s first year in office.
The current impasse over the debt limit eased when Senate Republican leader Mitch McConnell, R-Ky., agreed to help pass the short-term increase. But he insists he won’t do it again.
In a letter sent to Biden on Friday, McConnell said Democrats would have to handle the next debt-limit increase on their own, using the same process they used to pass Biden’s massive social spending and environmental plan. done for. Reconciliation allows the law to be passed by the Senate with 51 votes instead of the 60 that is usually required. In a 50-50 split, Vice President Kamala Harris gave a majority to Democrats with her tiebreaking vote.
Lawmakers on both sides have used debt ceiling votes as leverage for other priorities. House Speaker Nancy Pelosi has threatened to vote against raising the debt limit while President Donald Trump is in office, saying she has no reason to support lifting the debt limit to enable Republicans to give the wealthy another tax break. Not intended. And in 2011 Republicans managed to get President Barack Obama to accept nearly $2 trillion in deficit cuts as a condition for raising the debt limit – though lawmakers later withdrew some of those cuts.
Watch: Biden enlists CEO to warn of default if federal loan limit is not raised
Pelosi told reporters Tuesday that Republicans and Democrats over the years have voted against removing the debt limit, “but never to the extent of jeopardizing it.”
Pelosi said she expects Congress to lift the debt limit bipartisan this December because of the stakes involved. But he also issued a bill sponsored by Rep. Brendan Boyle, D-Pa., that would shift the duty of removing debt limits from Congress and vest it with the Treasury secretary, “I think it has merit.”
In his focus on debt limits, McConnell has tried to link Biden’s large federal government spending with the nation’s growing debt load, even though they are isolated and whether the debt limit will have to be raised or suspended whether Biden’s $3.5 trillion. Makes plans or not, it’s in the law.
“Your lieutenants on Capitol Hill now have the time they claim they lack to address the debt ceiling through standalone conciliation, and have all the tools to do it,” McConnell said in the letter. “They can’t invent another crisis and ask for my help.”
McConnell was one of 11 Republicans who sided with Democrats to push debt ceiling recovery to the final vote. Subsequently, McConnell and his GOP allies voted against the final passage.
The agreement on a short-term fix came suddenly. Some Republican senators said threats from Democrats to end the 60-vote limit for debt ceiling votes – Biden called this a “real possibility” – had played a role in McConnell’s decision.
Ted Cruz, R-Texas, said, “I understand why the Republican leadership blinks, but I wish they didn’t.”
The current debt limit is $28.4 trillion. Both sides have contributed to that burden with decisions that have rarely left the government operating in the dark.
The disastrous consequences of the defaults are that lawmakers have been able to settle for lifting or suspending debt limits nearly 18 times since 2002, often after repeated rounds.
A recent report from Moody’s Analytics warned, “Global financial markets and the economy will be upended, and even if resolved quickly, Americans will be paying for this default for generations.” Gotta do it.”