Pelosi says House will vote to prevent U.S. default
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The U.S. Capitol is seen on September 27, 2021 in Washington, DC as Congress returns today to a full schedule of pending legislative items.
Win McNamee | Getty Images
The House will vote Wednesday on a bill to suspend the U.S. debt ceiling as the country barrels toward a first-ever default with no clear solution in sight.
Republicans will sink the legislation in the Senate, if it is passed by the House. Republicans have opposed raising the borrowing limit, and they appear determined to make Democrats consider it in their massive investment in climate and social policy.
Janet Yellen, Treasury Secretary to the United States has warned lawmakers that there will be no way for them to pay their bills by Oct. 18. Congress should suspend or increase the debt limit by the deadline to avoid default, which could lead to millions of lost jobs, financial market crashes, and government benefits being wiped out.
“Today, the House plans to move forward to honor its responsibility to protect the American economy and American families from the catastrophe of a default by passing legislation to suspend the debt limit,” House Speaker Nancy Pelosi, D-Calif., wrote to Democrats.
The party aims to head off two separate crises this week. The first is the Thursday midnight deadline for passing a funding bill to prevent the government from shutting down.
The Senate could vote on a short-term appropriations plan as soon as Wednesday that would fund the government until early December. The bill would be sent to the House for approval, where it is likely to pass.
Congress is still grappling with the issue of the debt ceiling.
Two Democratic attempts to resolve the problem have been blocked by Republicans. A bill which would have extended the funding of the government to December was blocked by GOP senators. It also suspended the borrowing ceiling through Dec. 2022.
Republicans insist Democrats should raise the limit on their own, leading Senate Majority Leader Chuck Schumer, D-N.Y., to introduce a motion that would allow the Senate to hike the ceiling with a simple majority. It needed unanimous consent, and Minority Leader Mitch McConnell, R-Ky., blocked it on Tuesday.
Republicans would like to tie the increased debt ceiling to massive Democrats’ legislation. This is to ensure that their midterm elections in 2022 are centered on their fellow Republicans’ taxing, spending and budget proposals. McConnell stated repeatedly that Republicans will support a bill for government funding which doesn’t include the suspension of borrowing limits.
The debt ceiling is not raised to authorize spending in the future. Without increasing or suspending the debt limit, the U.S. will be unable pay its existing obligations.
Schumer so far has insisted that he would not include a debt ceiling suspender in the Democrats’ social expenditure bill. This is a bill they intend to pass through budget reconciliation with a simple majority. On Wednesday, he said the party would have to amend its already passed budget resolution — the first step in reconciliation — to do so. The process of reconciliation allows Democrats to pass some bills with no Republican support.
Schumer warned that restarting the process could cause delays in the borrowing limit proposal, which would lead to the U.S. moving closer to default.
It is extremely risky, and it could lead to us defaulting even though only one senator wants that. “So you cannot do it this way,” he stated.
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