Washington – President Joe Biden signed a bill on Thursday to raise the country’s debt limits until early December, delaying the prospect of unprecedented federal defaults causing economic disasters.
The House of Representatives passed an increase in the country’s borrowing limit of $ 480 billion on Tuesday after the Senate approved it in a party vote last week. Final approval came after a delay that required 60 votes to stop after a protracted confrontation with Senate Republicans who upset the first democratic efforts by filibuster.
Eventually, a handful of Senate Republicans agreed to join the Democrats, ending the GOP delay and voting to move to the final vote on the bill, but minority leader Mitch McConnell said Republicans were He said he did not support the further increase in December.
Treasury Secretary Janet Yellen warned that the United States would reach its borrowing limit on Monday. The unprecedented situation she and others have warned can lead to the economic collapse of a country still recovering from a pandemic. Regular government payments to social security beneficiaries, disabled veterans, and active military personnel could potentially be delayed, and the US economic downturn could spill over into the global market.
Passing the short-term debt cap hike ensures that the United States will continue to meet its obligations for now. But it sets another potential cliff at the end of the year — when lawmakers also work to pass federal funding bills to avoid government closures.
Republicans say budget manipulation should be used to pass debt limit hikes without Republican support, such as the process Democrats use for Biden’s large-scale climate change and social safety net programs. Stated. But the Democrats resisted that option. The clash between the two parties leaves Congress without a clear solution to avoid the next default deadline in December, but the White House emphasizes that it is still pursuing a bipartisan increase.
Members of both parties used debt cap voting as a leverage for other priorities. Speaker of the House Nancy Pelosi said he wouldn’t support raising the debt cap to allow the Republicans to give the rich another tax cut when President Donald Trump took office. Threatened to oppose the withdrawal. And in 2011, Republicans forced President Barack Obama to accept a deficit cut of about $ 2 trillion as a condition to raise debt caps, but lawmakers later rolled back some of these cuts.
The Associated Press writer Kevin Freking contributed to this report.
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Biden signs debt limit hike, but December standoffs are imminent
Source link Biden signs debt limit hike, but December standoffs are imminent