House votes to raise US debt ceiling through December

dWeb.News Article from Daniel Webster dWeb.News

dWeb.News Article from Daniel Webster dWeb.News

The US House of Representatives approved Tuesday a Senate bill temporarily increasing the government’s borrowing limit at $28.9tn. This puts off default risk at least until December.

The House is controlled by Democrats who hold a narrow majority. However, Democrats maintained party discipline to pass hard-fought $480bn debt limit hike. The Guardian reports that the vote was a party-line vote, with Democrats voting yes and Republicans voting no.

Joe Biden is expected sign the measure into law next week, just before 18 October when the Treasury department estimates it will not be able pay the nation’s debts without Congress’ action.

Republicans insist that Democrats must take responsibility for raising debt limits because they want trillions of dollars to expand social programs, and combat climate change. Democrats argue that the increase in borrowing authority is necessary to pay for the tax cuts and spending programs under Donald Trump’s administration. House Republicans supported this.

The House passage was able to dispel fears that the world’s biggest economy would default, but only for seven weeks. This set the stage for ongoing fighting between the parties according to The Guardian.

On Friday, Mitch McConnell, the Senate Republican leader, wrote to Biden that he wouldn’t work with Democrats for another debt limit hike. Trump, the Republican party leader, harshly criticised McConnell after the Senate vote.

The deadline for spending legislation by lawmakers to stop a government shutdown is 3 December.

Last week’s Senate vote to increase the limit, which was more routine than the current era in fierce partisanship, turned into a brawl. Republicans attempted to tie the measure to Biden’s goal to pass multitrillion-dollar legislation that would bolster infrastructure and social service while combating climate change.

Nancy Pelosi, House Speaker, stated that she is optimistic that Democrats will be able to make changes to lower the cost of their social policies plans in a timely manner at a press conference on Tuesday.

Progressive Democrats also indicated to reporters that they wanted to compromise and keep the multitrillion dollar plan’s programs intact, but shorten the time frame to reduce its overall cost.

Biden suggested that a range of $2tn be used instead of the $3.5tn initial target. Jen Psaki, White House press secretary, stated that the White House is at a stage where decisions must be made given the fact that there will be fewer dollars available.

Psaki stated that conversations are ongoing between White House senior personnel and the president, as well as key Democrats like senators Joe Manchin from West Virginia and Kyrsten Silema of Arizona about how to reduce the bill and what a smaller package might look like.

Psaki was asked by the questioner if President Pelosi supported the strategy for “Build Back better” that Pelosi presented in a letter she sent Monday to members of the caucus. The letter stated that the bill passed with fewer programs receiving more funding. Psaki said that the bill would be smaller than the $3.5tn Biden proposed. She also referred to comments Pelosi made during the press conference.

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