Democratic Party Puts Debt Limit Suspension on Financing Bill

Speaker of the House Nancy Pelosi, D-Kalifu, will hold a news conference with the Democratic Party of the House at the Capitol Visitor Center on Friday, July 30, 2021, on achievements, including the Capitol Visit Act and the rest of the agenda for the year.

Tom Williams | CQ-Roll Call, Inc. Getty Images

Democratic parliamentary leaders on Monday said they would pass a bill to prevent and suspend government closures. U.S. debt limits They try to dodge two possible crises at once.

Congress is facing a September 30 deadline to fund the federal government. Separately, Treasury Secretary Janet Yellen told lawmakers that the United States is likely to be unable to pay the bill by the end of October unless Congress suspends or raises its debt cap.

The House of Representatives will vote for a bill this week that addresses both issues. The bill will fund the government until December and suspend debt caps until the end of 2022, House Speaker Nancy Pelosi (Democratic Party) and Senate Chairman Chuck Schumer (Democratic Party) said in a joint statement.

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The fate of the bill is uncertain. Republicans have said they will not join the Democratic Party to suspend debt caps, raising the possibility of defaults that could devastate the global economy.

Pelosi and Schumer said on Monday that Republicans are obliged to deal with debt restrictions as they helped the Republicans pass a vast coronavirus aid program last year.

“To address debt restrictions is to fulfill the obligations the government has already made, such as the bipartisan emergency COVID bailout law from December and important payments to social security recipients and veterans,” they said. He added that the default “could plunge the country.” In recession. “

The Democratic Party also said the funding bill would include relief money for a series of recent natural disasters. This could be more appealing to Republicans representing stormy states. Republican Senator John Kennedy told NBC News that he tends to support funding bills, including a suspension of debt caps, as it includes “significant” bailouts from the state recently hit by Hurricane Aida. rice field.

Senate minority leader Mitch McConnell, the Republican Party, has sought to suspend the Democratic debt cap as part of a bill of up to $ 3.5 trillion to invest in social safety nets and climate policy. He did not retreat from his position on Monday.

“They have all the tools they have to deal with debt limits themselves,” he said.

McConnell said his party would vote for a short-term government funding bill that does not include a suspension of debt restrictions.

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Democratic Party Puts Debt Limit Suspension on Financing Bill

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