Late on Tuesday, the United States House of Representatives passed legislation allowing Congress to a speed-track bill raising the debt limit of the Biden government and avoid a likely extraordinary default. Moreover, on Thursday, the Senate expected to take up the move, preventing delaying tactics. In addition, it would swift the way for Congress to consider a separate bill to boost the current $28.9 trillion limit on national borrowing authority to a still-to-be-decided level.
Moreover, the House voted 222-212 in favor of the legislative move designed to haste approval of a debt limit boost in the Senate. Only one Republican leader voted in favor of the measure. Democratic Representative Steven Horsford expressed during the House debate that raising the debt ceiling will prevent the country from defaulting on the debt it already owes. It is about investments that Congress approved previously.
222-212:House passed legislation setting up a process to avoid a debt default by allowing Senate to increase debt limit w/only a simple majority.Bill also delays Medicare cuts set to go into effect Jan. 1 & waives PAYGO budget rules.Kinzinger (IL) was only Republican to vote Yes. pic.twitter.com/x6ejTo6MPC
— Craig Caplan (@CraigCaplan) December 8, 2021
Nancy Pelosi, the Democratic U.S. House Speaker, warned of terrible consequences without quick action by Congress. Furthermore, she stated that the House must address the debt limit to avoid an excessive and catastrophic fall of trillions of dollars of GDP and a damaging downgrade to credit rating. On the other hand, Republican leaders argued against any action, knowing the Democratic Party planned to shoulder the burden on their own under an agreement privately settled with both parties.
Biden’s Build Back Better Plan
Kevin Brady, the Republican lawmaker, said that make no mistake. The debt ceiling is being increased to pay for trillions of uneconomical socialist spending. Brady was referring in part to the U.S. President Joe Biden’s Build Back Better domestic spending package of around $1.75 trillion that Democratic leaders hope to approve in the Senate this month.
Best Interest of the U.S.
According to the Democrats, the raised borrowing authority required mainly to cover the loss of tax reductions and spending programs during the administration of Republican President Donald Trump, which Congressional Republican leaders backed. Usually, several bills required the support of at least sixty senators to clear technical barriers. However, Mitch McConnell, the Senate Republican leader, sent an open message that his party will help back a debt limit increase even if its members intend to vote in opposition to the actual bill implementing it.
McConnell told reporters that it is in the best interest of the U.S. by avoiding default, and he expressed confidence in the passage of the bill. Congress expected to complete action on the long-running clash between Republicans and Democrats by 15th December, the date Treasury Secretary Janet Yellen requested to appease financial markets and ensure there would be no default – an event that would have disastrous economic consequences.
The increase in the debt limit, after approval, expected to provide Treasury with enough borrowing authority through the congressional elections of November. Moreover, the breakthrough strategy of Tuesday, brokered by Republican and Democratic congressional leaders following several months of political infighting, would launch a two-step approach for increasing the borrowing authority of Treasury.
If the Senate approved the House-passed bill, a second move lifting the debt limit under the accelerated procedure would then be debated for a maximum of ten hours in the Senate, rather than the open-ended debate that can delay or kill several bills in the chamber. Senate approval by a simple majority would pave the way for a concluding vote by the House. Democrats narrowly controlled both chambers.