House takes step toward preventing U.S. default
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Nancy Pelosi, the Speaker of Congress, talks to journalists during her weekly news conference at the U.S. Capitol Visitors Center in Washington DC on December 02/2021.
Chip Somodevilla | Getty Images
The House made a start Tuesday towards stopping a default on U.S. government debt.
With a simple majority vote, the Senate could raise the national borrowing limit. This provision would have prevented automatic Medicare reductions that are scheduled for the end of this year, as added by lawmakers.
This measure will be sent to the Senate. For the measure to be passed and sent to President Joe Biden, it needs 10 Republican votes.
Once the president signs the bill, the House and Senate can hold separate votes to raise the debt ceiling with a simple majority — or without Republican support. GOP leaders stated that they will not be joining Democrats to raise the borrowing limit. However, as part of a new strategy Republicans won’t block their counterparts from stopping a default.
Janet Yellen, Treasury Secretary has calculated that the U.S. would reach its debt ceiling Dec. 15. This raises the possibility of a default. Failure to meet its obligations by America could cause havoc in the stock market and global economy.
As a Senate Minority Leader, Mitch McConnell stated Tuesday that he believes the Medicare and Debt Ceiling Bill will receive enough GOP support in the Senate to pass.
He indicated that Thursday was the day for the chamber to vote on the legislation.
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