U.S. Congress to vote on debt-limit hike, averting default risk -Breaking
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© Reuters. Washington, U.S. Capitol Building, seen December 6, 2021. REUTERS/Elizabeth Frantz/FilesWASHINGTON, (Reuters) – The U.S. Congress will vote Tuesday on raising the $28.9 Trillion federal debt limit. This would end a long-running standoff between Republicans & Democrats which had led to an unprecedented default risk.
Although party leaders didn’t say how high they would raise the limit, observers expect a rise of between $2 trillion and $3 trillion in federal spending to cover the needs of the federal government through next year’s Nov. 8 midterm elections. This will decide which candidate controls Congress.
It is partly necessary to repay debts incurred in the time of Republican Donald Trump’s presidency. This was when debt rose by approximately $7.85 Trillion, partially through tax cuts and spending on fighting the COVID-19 pandemic.
Republicans attempted to connect the vote with Democratic President Joe Biden’s $1.75 trillion “Build Back Better” bill in an effort to strengthen social safety nets and combat climate change.
This fight, along with another crisis created by Congress, saw Congress take up much of December. Members in both chambers now want to go on long holiday breaks.
According to a last-week deal between leaders of the two political parties, the Senate will vote first. It may pass the bill with just Democratic votes. After that, the Democratic-controlled House of Representatives will vote on the bill, sending it to Biden for his signature.
Janet Yellen (US Treasury Secretary) had urged Congress on Wednesday to raise the debt limit.
Since World War One has seen regular elections to lower the nation’s debt ceiling. However, some legislators have become reticent to such legislation in the last few years because they fear backlash from voters.
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