Reuters removes first hurdle in Democrats’ bill to raise US debt ceiling

Reuters file photo: The sun rises behind the US Capitol before the “Justice for J6” rally in Washington, USA, on September 13, 2021. Reuters / Jonathan Ernst

By Richard Cowan

WASHINGTON (Reuters) – A Democrat-backed bill approved a systematic vote in the House of Representatives on Tuesday to fund the U.S. federal government by December and suspend its orrow until the end of 2022, leading to a final debate and vote.

Even if the measure passes the Democratic-controlled House, when it votes on the full bill later Tuesday, it faces a major hurdle in the Senate, where Republicans have vowed to oppose it.

House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer set the stage for a showdown with Republicans on Monday when they said they would combine spending and debt measures in a bill, with Senate Republican leader Mitch McConnell pledging to stem the 28 28.4 trillion blockade.

On Tuesday, McConnell repeated that vow. But he added, “I want to repeat again: America can never be the default. We never have and we never will.”

Speaking to reporters, McConnell added, “The limit will always be raised, as it always should be. But it will be raised by Democrats.”

Democrats probably have a vote in the House to pass the measure. If it fails to win the support of Republicans in the Senate, they will have to pass it through reconciliation, a strategy closer to Senate rules that requires 60 of the 100 members of the chamber to pass legislation.

They also plan to use that strategy to pass President Joe Biden’s বিনিয়োগ 3.5 trillion internal investment plan.

Schumer and Pelosi will meet with fellow Democrat President Joe Biden at the White House on Wednesday afternoon, a source familiar with the plan said.

Towards the end of this month, Congress jumped into a number of major issues, ranging from funding the government to lack of funds for ongoing activities, raising the country’s debt ceiling and the Democrats’ desire to pay a huge social spending bill. For Biden’s agenda.

“Playing with the ceiling is playing with fire and putting it on the backs of the American people,” Schumer said in a statement.

Congress faces a Sept. Sept deadline for approving stop-gap funding, which could avoid a partial government shutdown at the start of the new fiscal year on Oct. 1.

The Treasury Department will not exhaust its borrowing authority for some time in October unless the debt limit is increased.

The bill would suspend official ing by December 2022.

The current debt limit has already been exceeded, with a debt of $ 28.78 trillion. It is being funded temporarily through the Treasury Department’s “extraordinary arrangement” which is due to end in October.

Without a deal, Congress could face a possible partial government shutdown, with both Democrats and Republicans warning of dire consequences, including the ultimate disruption of veteran military and Social Security retiree benefit checks.

Republicans said they would support a temporary spending bill to avoid a shutdown if the debt limit was increased from the bill.

Schumer said a historic historical breach of orrowing could spread to the U.S. economy, raise consumer interest rates and possibly force state governments to raise taxes to pay their higher interest rates.

“Republicans don’t just have to force a default vote,” Schumer said.

Republicans have argued that while they do not want to default on debt, they do not support raising the debt limit at a time when Democrats are aiming to pass huge new domestic spending – Democrats say taxes on the rich will be paid and corporations.

“The bill that Speaker Pelosi is bringing this week will not become law. They will have to go back to the drawing board,” House No. 2 Republican Steve Scalis told a news conference.

Schumer said most of the recent debt was related to spending that Republicans supported during Donald Trump’s presidency, including the December emergency COVID-19 relief bill.

If the House passes the law briefly and it loses in the Senate, lawmakers will have to come up with a new strategy or face two problems with a partial shutdown of the government that is unable to pay its bills and risks default for the first time in modern history.

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