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Democrats to put debt limit suspension in funding bill


Speaker of the House Nancy Pelosi, D-Calif., conducts news conference in the Capitol Visitor Center with House Democrats on achievements including the For The People Act and the agenda for the remainder of the year, on Friday, July 30, 2021.

Tom Williams, CQ-Roll Call, Inc., Getty Images Democratic congressional leaders said Monday that they will attempt to pass a bill to both stop a government shutdown from occurring and also suspend the debt limit. This is in an effort to avoid two crises.| CQ-Roll Call, Inc. | Getty Images

Democratic congressional leaders on Monday said they will try to pass a bill that both prevents a government shutdown and suspends the U.S. debt limit as they try to dodge two possible crises in one swoop.

Congress has a September 30 deadline for funding the federal government. Janet Yellen from the Treasury Department has informed lawmakers that the U.S. won’t be able pay its bills until October if Congress fails to suspend the debt ceiling or raise it.

Both issues will be addressed by legislation the House is expected to vote on this week. In a joint statement, Nancy Pelosi (D-Calif.) and Chuck Schumer (D-N.Y.), said that the bill would finance the government until December, as well as suspending the debt ceiling to the end 2022.

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The bill’s fate is uncertain. Republicans say they won’t vote with Democrats to suspend the debt limit, which raises the possibility of an economic default that would devastate global economies.

Pelosi and Schumer stated Monday that the GOP must address the debt ceiling as the GOP was responsible for passing the massive coronavirus relief plans.

According to them, “Addressing our debt limit is about fulfilling obligations that the government has made,” such as December’s bipartisan emergency COVID relief legislation and vital payments to Social Security recipients, along with other important payments, they warned that the default would “potentially plunge the nation into a recession.”

Democrats also noted that the funding bill will include relief money for a recent string of natural disasters — which could make it more appealing to GOP lawmakers who represent states hit by storms.

Senate Minority Leader Mitch McConnell of Kentucky tried to get Democrats to lift the debt ceiling in their bill worth up to $3.5 billion to fund climate policies and the social safety net.

This is an ongoing story. Keep checking back for more updates.

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