Richard Cowan and Susan Cornwell

WASHINGTON (Reuters] – Tuesday’s action by the U.S. House of Representatives saw them advance legislation to fast track the passage of legislation increasing the federal government’s borrowing authority to stop a nation from defaulting on its debt.

The House Rules Committee would meet to discuss the legislation that was introduced. This committee would avoid procedural obstacles, which could delay passage in the Senate.

Still, the amount in dollars required to meet the new statutory debt limit must be established.

Senator Majority Leader Chuck Schumer indicated that the Senate has made some progress towards drafting legislation to improve federal government borrowing authority. Additionally, he expressed confidence in the likelihood of an avoidable default by the U.S.

Schumer stated that “We have made great progress on this topic and I am optimistic we will be in able to stop the terrible prospect of the U.S. defaulting its sovereign debt for a first ever,” during a speech before the Senate.

John Cornyn (a senior Republican senator) told reporters that he was comfortable accepting a bill to limit the debt that would go through the Senate quickly and have only Democratic support.

Cornyn said, “It has never been a real fight over this process.” Cornyn explained that the only thing that could increase national debt is the accountability associated with spending all that money.

He was speaking mainly about Democratic President Joe Biden’s domestic investment bill of $1.75 trillion, known as “Build back Better”, which Senate Democrats hope will pass within the next few weeks.

Democrats argue that most, if not all of this bill’s spending would be offset by tax hikes on the wealthy. The current need to raise the debt limit to fund past spending supported by Republicans is the main reason for the increase.

House Majority Leader StenyHoyer stated Monday that he hoped the chamber would vote on a bill to increase debt limits this week, before Treasury Secretary Janet Yellen requested that it be done by December 15.

Last week, the Bipartisan Policy Centre estimated that Treasury Department might run out of extraordinary measures to maintain government borrowing and payments without Congress taking any action.