WASHINGTON (Businesshala) – US Senate leaders have agreed to extend the Treasury Department’s lending authorization until early December, averting potential loan defaults later this month, Senate Majority Leader Chuck Schumer announced on Thursday. Of.
Schumer, referring to a vote on the passage of the law, said, “We have reached agreement to extend the debt limit through early December and it is our hope that we can accomplish this as soon as today.” can.”
Democrats were trying to pass legislation that would have raised the debt limit through the end of 2022 but Republicans blocked that effort.
If the new deal passes, Congress will have several weeks to try to agree an increase in the long-term debt limit or another stop-gap measure.
In December, Congress also faces a deadline for funding the government. Democrats also want to pass two big spending bills that make up President Joe Biden’s domestic agenda in the coming weeks, including a multitrillion-dollar social policy package and a $1 trillion bipartisan infrastructure bill.
Without Congressional action to raise the debt limit to $28.4 trillion, the Treasury Department estimates that it will be out of ways to pay all of its bills by October 18.
On Wednesday, a breakthrough came when Senate Republican leader Mitch McConnell proposed a temporary debt limit increase that would not be blocked by members of his party.
That resolution triggered behind-the-hours talks between the two sides than lasted until late Wednesday.
Schumer did not say whether the increase in the temporary loan limit would be pegged to a specific dollar amount or only for a specific date.
But while Democrats were going with a two-month extension of the higher borrowing limit, they showed little interest in another demand from McConnell: that they pass the long-debt limit extension through a complicated process called conciliation. Use the intervening weeks.
Many Democrats said it would be too complicated and risky.
“We’re not going to limit debt through reconciliation,” said Democratic Senator Debbie Stabeno. “At this point, if we can get it (the debt limit) to December, that would give us more time to complete the president’s agenda.”
Republicans said they were concerned that Democrats might change a rule here known as the filibuster, which requires an overwhelming majority of 60 votes to move most laws forward if the debt issue is not resolved. it was done.
The Senate is split 50-50 between the parties, which has allowed Republicans to use filibusters to block Democratic efforts to suspend debt limits as well as other Democratic initiatives. But Biden said late Tuesday that Democrats would consider raising the debt limit and making an exception to the filibuster here to protect the economy.
Asked whether his fellow Republicans were becoming concerned about approaching default, Senator Kevin Cramer said: “Republicans are more concerned about the prospect of blowing up a filibuster.”