House Set to Temporarily Raise Debt Limit

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Lawmakers returned to Washington early to vote on the measure after Treasury requests that borrowing limits be raised this week

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The bill would raise the debt limit to $480 billion, which the Treasury Department has said will allow the US to pay its bills by December 3, assuming it has exhausted all of its cash-conservation strategies. Have given. Goldman Sachs predicts that the money will last somewhat longer, though not before the end of the year, suggesting the US will have to address the debt limit again about two months before Congress.

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The Democratic-led House unified around raising the borrowing limit is assured of enacting the measure in law because it requires only a simple majority to pass the law. “We must remove the debt cap and hopefully we can have a unanimous Democratic vote and perhaps a bipartisan vote to do so,” Mrs Pelosi said in a letter to aides on Monday.

In the letter, Mrs Pelosi also weighs in on another challenge facing the party: how to best trim the social-policy and climate bill to address the cost concerns of the party’s centrists and get it passed, initially at $ was set at 3.5 trillion. “Overwhelmingly, the guidance I am receiving from members is to do less things well so that we can still have a transformative impact on families in the workplace and address the climate crisis responsibly,” she wrote.

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In the Senate, Democrats and Republicans have battled for months over the terms under which Congress will raise the debt limit, a spurt in a fight over Democrats’ plans for a multitrillion-dollar health, education and climate-change bill. Proxy created.

Debt-limit increases do not authorize new spending, but allow the government to meet existing obligations, including interest on loans and payments to Social Security, Medicare and Medicaid.

Republicans tried to force Democrats to use a complicated process called budget reconciliation to pass the increase without the help of the GOP. The conciliation process allows the Senate to pass laws related to spending, taxes or debt limits with a simple majority, bypassing the 60-vote limit for most laws. But it could also give Republicans some strategic advantage.

The reconciliation process is more time-consuming than passing normal bills—the marathon amendment—requiring two separate sets of vote sessions known as “vote-a-rams.” It would waste time Democrats would love to spend on Mr Biden’s broader climate and social-welfare agenda. Republicans also hoped that by forcing debt-limit increases through reconciliation processes, the legislative maneuver would force Democrats to increase debt rather than suspend debt limits until December 2022.

Republicans and Democrats in the Senate are set to return to the same debate when they return next week. Last week’s bitter fight got worse when Senate Majority Leader Chuck Schumer (D., NY) criticized Republicans on the Senate floor for the debt-limit crisis, comments that angered Republican leaders, who had quelled rebellion within their own ranks to increase borrowing limits

Senate Minority Leader Mitch McConnell (R., Ky.) called on President Biden on Friday to privately discuss his criticism of Schumer and publicize his position in a separate letter to the president, according to a Senate aide. did. “In light of Senator Schumer’s frenzy and my serious concerns that another huge, reckless, partisan spending bill will harm Americans and help China, I do not favor any future effort to minimize the consequences of Democratic mismanagement. Will be,” Mr McConnell wrote.

This leaves the question open as to how the Congress will decide the way forward. The December 3 deadline for raising the loan limit coincides with the deadline for passing a law to avoid a partial government shutdown.

Democrats can give in to Republican demands to use the conciliation process to raise the debt limit. Or they could try to garner Republican support again, even though the Senate’s top Republican said he would not vote again to raise the debt ceiling through the regular process.

Siobhan Hughes at [email protected]

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