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Debt ceiling vote: US US temporarily avoids default disaster; House likely to vote to extend borrowing limit – Fresno, California

Fresno, California 2021-10-08 08:02:36 –

Washington-The Senate avoids U.S. debt disasters, extends government borrowing power to December, and warns experts to devastate the economy and harm millions of Americans by an unprecedented federal government Resolved to temporarily avoid default.

A 50-48 partisan Democratic vote in support of a bill that would raise the government’s debt cap by about $ 5 trillion provided immediate relief in Washington and beyond. But it just provides an amnesty. Assuming the House of Representatives is in favor of the Senate Thursday night vote, Republicans and Democrats will need to tackle the deep difference on this issue again by the end of the year.

The debate takes place as legislators work to fund the federal government for the new fiscal year and continue to fight fiercely over President Joe Biden’s domestic top priorities-bipartisan. A much larger $ 3.5 trillion initiative in infrastructure planning, focusing on nearly $ 550 billion in new spending and health, safety net programs, and the environment.

more: Why Daily Americans Need to Care About Debt Caps

Republican Senate leader Mitch McConnell of Kentucky has eased the immediate crisis and is approaching a disastrous default in just a few weeks. He acted as Biden, and business leaders heightened their concerns that default would disrupt government payments to millions of Americans and plunge the country into recession.

So far, the GOP concession to abandon the blockade has not been popular with some members of McConnell’s Republican caucuses who complained that the country’s debt levels were unsustainable.

Utah Senator Mike Lee said shortly before the vote, “We can’t vote to raise this debt cap, especially given our plans to increase spending by another $ 3.5 trillion soon.” rice field.

Texas Senator Ted Cruz said the Democrats were on the “road to surrender” in the process used to raise debt caps, “and unfortunately, the Republicans blinked yesterday.” ..

But Senator Lisa Murkowski of Alaska was one of those who voted to end the debate and allow voting on the bill.

“I don’t want to get this train off the cliff,” she said.

Eleven Republicans resolved to end the debate and provided the necessary thresholds to move the bill to the final vote. However, no Republican supported the Democratic Party in the final vote of the bill. McConnell argued that the majority of parties had to raise their debt caps themselves.

Congress has only a few days to act by the deadline of October 18. The Treasury then warned that there would soon be a shortage of funds to handle the country’s already incurred debt burden.

The House of Representatives is likely to approve this measure next week. Following Senate action, Majority Leader Steny Heuer announced that the House of Representatives would be recalled to the session for voting on Tuesday night.

Republican leaders held a private chat late in the afternoon and worked all day to find the 10 votes needed by the party to advance the debt limit extension to the final vote. Senator Josh Hawley of Missouri said it was a long “lively” debate in the room.

McConnell said he would allow all views to air and eventually vote in favor of senators to limit discussions.

Voting began with McConnell and South Dakota Senator John Thune (second-place Republican) waiting slowly and patiently, but certainly nine GOP colleagues came and expected. I gave up my thumb. McConnell joked when Cruz voted against it.

The White House has expressed its support for Biden, and Deputy Press Secretary Karine Jean-Pierre said she will sign a bill to raise debt limits when the president passes parliament. Shaking Republicans, she also said, “Senator McConnell gives us some breathing from the devastating defaults we were approaching for the decision to do our economy and politics.” rice field.

Wall Street rebounded modestly on Thursday with news of the deal.

The agreement sets the stage for some sort of sequel in December. Congress faces again the imminent deadline of funding the government and raising debt limits before returning home for vacation.

The $ 480 billion increase in debt caps is at the level the Treasury said needed to reach safety on December 3.

“Thanks to a Democratic colleague for showing unity to resolve the crisis manufactured by the Republican Party,” said Chuck Schumer, leader of the Senate majority in New York. “Despite immense opposition from McConnell leaders and members of his conference, our caucuses united and pulled our country back from the edge of the cliff where the Republicans tried to push us in. I did. “

McConnell saw it quite differently.

“The path accepted by Democratic colleagues is to clear the majority’s excuse that Americans have escaped the short-term crisis and at the same time didn’t have time to deal with debt restrictions through (reconciliation),” McConnell said. Let’s do it. ” “There is no doubt about this. They have plenty of time.

McConnell and his Senate Republicans still argue that the Democratic Party will do it alone to raise its debt cap in the long run. In addition, McConnell strengthens safety nets, health and environmental programs, claiming that Democrats have passed a $ 1.9 trillion COVID-19 bailout bill using a cumbersome legislative process called reconciliation. We have been trying to pass Biden’s $ 3.5 trillion bill.

On Wednesday, Biden said that as the deadline approached, it created a historic default risk like a “meteor” that could crush the U.S. economy and send waves of damage around the world, and immediately suspend debt restrictions. We asked top business leaders to promote.

At a White House event, the president embarrassed Republican senators for threatening to filibust the $ 28.4 trillion cap. He is devoted to the credibility of the company’s America (a group that has traditionally worked with the GOP on tax and regulatory issues), as the leaders of Citi, JPMorgan Chase, and Nasdaq get together in person and effectively say debt. bottom. You need to lift the restrictions.

“It’s not right and it’s dangerous,” Biden said of resistance by Senate Republicans.

Once a routine problem, raising debt limits has been politically endangered over the past decade, especially by Republicans to counter rising government spending and debt burdens.

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Washington AP writers Lisa Mascaro, Farnoush Amiri, Josh Boak, and New York AP business writer Damian J. Troise contributed to this report.

Copyright © 2021 By AP communication. all rights reserved.



Debt ceiling vote: US US temporarily avoids default disaster; House likely to vote to extend borrowing limit Source link Debt ceiling vote: US US temporarily avoids default disaster; House likely to vote to extend borrowing limit

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