U.S. House expected to pass bill to hike debt ceiling, avert default

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WASHINGTON (Businesshala) – The Democratic-controlled US House of Representatives is expected to give final approval on Tuesday to a bill passed by the Senate that temporarily raises the government’s borrowing limit to $28.9 trillion by early December while removing the risk of default. will increase to

FILE PHOTO: An American flag flies outside the US Capitol dome in Washington, US, January 15, 2020. Businesshala / Tom Brenner

Democrats, who control the House by only a four-vote margin, were expected to maintain party discipline and pass the tough fight, increasing the debt limit of $480 billion, only a historic loan default and To face another deadline within weeks to avoid both. Temporary government shutdown.

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Last week’s Senate vote to raise the threshold — often a routine move — here turned into a partisan controversy, with Republicans linking President Joe Biden’s bill to a multitrillion-dollar pair of bills aimed at spending on Bilster infrastructure. Tried to link the measure and social services fighting climate change.

In fact, the vote is to cover past spending already approved by Congress, including during Republican Donald Trump’s presidency.

The Democratic-controlled Senate passed a bill raising the $28.4 trillion statutory limit last Thursday, with the help of 11 Republicans, as the country approached the projected October 18 deadline, when the Treasury Department no longer had the ability to make debt payments. Will be lenders.

House Republicans are vowing to oppose it. Senate Republican leader Mitch McConnell, who was one of 11 members of his party who voted for a stopgap loan limit increase, has pledged to withdraw his support for another extension in December. He hopes to force Democrats to use a special “conciliation” process, allowing the next debt ceiling to be implemented with only Democratic votes.

House Speaker Nancy Pelosi, a Democrat, could risk getting some of her caucus members to vote against an increase in the debt limit and still remain so on Tuesday.

On September 29, two of the 220 Democrats voted against a separate bill to raise the debt limit through the end of 2022, while only one Republican voted in favor.

That measure was blocked in the Senate, which then now had to resort to little escalation through Congress.

An eye on the 2022 elections

On Sunday, Treasury Secretary Janet Yellen described the increase in the debt limit as a “housekeeping chore” already implemented into law to cover payments for bills and tax deductions.

But it has become a big deal.

The months-long battle over debt limits stems from the November 2022 congressional elections, when Republicans are trying to secure a majority in both houses of Congress.

Democratic lawmakers fear that a Republican boycott of efforts to raise the debt limit will leave them exposed to political attack ads next year that accuse Democrats of fiscal laxity and defying mounting debt.

In a letter to Biden on Friday, McConnell wrote: “I will not favor any future effort to minimize the consequences of Democratic mismanagement.”

During the Trump administration, the debt limit was raised three times with support from Democrats, despite similar opposition to Republicans’ 2017 tax-cutting law and some of Trump’s spending priorities, along with the Southwest border wall to keep out immigrants. Including construction, all of which added to the government debt.

Reporting by Richard Cowan; Editing by Scott Malone and Peter Cooney

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