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Homes set to temporarily raise debt limits

Washington — House of Representatives set to vote for legislative withdrawal on Tuesday U.S. borrowing limit In December, Democrats worked on ways to set a new cap on US debt later this year over Republican resistance.

Speaker of the House

Nancy Pelosi

(D., CA) I called the house from a week away from Washington and handed it over. Increased debt cap that cleared the Senate last week. In a hurry, Treasury Secretary Janet Yellen warned Democratic leaders that if the Chamber of Commerce didn’t act this week, the United States wouldn’t be able to pay the bill. The White House said President Biden would sign the bill.

The bill will raise the debt cap by $ 480 billion. This is the amount the Treasury said would allow the United States to pay the bill until December 3, assuming the United States has run out of all its cash-saving strategies. Goldman Sachs predicts that funding will last somewhat longer, albeit not past the end of the year, suggesting that the United States will have about two months before Congress has to deal with debt caps again. There is.

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On Tuesday, Mrs. Pelosi came up with the idea of ​​empowering the Treasury Secretary to raise the borrowing limit. This is an idea promoted by some Democrats, but it has empowered Congress to refuse to raise it. This is similar to the approach devised by Senate minority leader Mitch McConnell (Republican of Kentucky) during the 2011 financial crisis. Increased subject to parliamentary disapproval.

“It seems to have some appeal on both sides of the aisle,” said Mrs. Pelosi. McConnell’s spokesperson declined to comment, noting last week in his statement that he would not provide any help in the future “to mitigate the consequences of mismanagement of democracy.”

Democratic-led house, Raise the borrowing limitThe bill is guaranteed to be legislated, as only a simple majority is required to pass the bill. “We must raise the debt cap and expect unanimous Democratic and perhaps bipartisan votes,” Mrs. Pelosi said in a letter to her colleagues on Monday.

Democratic leaders are cutting out votes for the actual bill. Instead, if the House of Representatives voted to approve a number of bill debates and rules governing the conditions for passing the bill, the debt cap bill itself would simply be considered passed and would be passed by Mr. Biden for his signature. I will send it to the desk. ..

In the Senate, Democrats and Republicans have been sparring for months over the conditions under which Congress will raise its debt cap. It replaces the trillions of dollars in the Democratic Party’s plan for health, education and climate change bills.

Raising debt limits does not approve new spending, but instead allows governments to meet existing obligations such as interest on debt and payments to social security, Medicare and Medicaid.

Republicans have tried to force Democrats to use a complex procedure called budget adjustments to pass the increase without the help of the GOP. The settlement process allows the Senate to pass bills related to spending, taxes, or debt restrictions with a simple majority, bypassing the 60-vote threshold for most bills. However, it can also give Republicans some tactical benefits.

The settlement process takes longer than passing a regular bill. Two sets of marathon modified voting sessions called “Lama Voting” are required. This would waste time Democrats prefer to spend on Mr Biden’s climate and social welfare agenda. Republicans also wanted legislative measures to link Democrats to debt increases, rather than suspending debt limits until December 2022, by forcing them to raise their debt caps through a settlement process.

It’s unclear if Democrats and Republicans are concerned because federal debt and budget deficits are widening in Washington. The WSJ’s Gerald F. Save finds out where each party stands on this issue.Photo Illustration: Todd Johnson

Senate Republicans and Democrats are ready to dive into the same debate when they come back next week. Senate leader Chuck Schumer (Democratic Party of New York) criticized Republicans on the Senate floor for the debt cap crisis, worsening last week’s fierce battle, commenting within his rank to increase borrowing. Restrictions that infuriated Republican leaders who had just put down the rebellion.

According to a Senate aide, McConnell called Biden on Friday to personally discuss Schumer’s criticisms and publicized his position in another letter to the president. “In light of Senator Schumer’s hysterical and my serious concerns about how another vast and reckless party spending bill would hurt Americans and help China, I’ve seen the consequences of mismanagement of democracy. You will not be a party to future efforts to mitigate, “McConnell wrote.

It leaves the question of how Congress goes on its way forward unsolved. The deadline for December 3 to raise the debt cap is Avoid partial government closure..

Democrats could succumb to Republican demands to use a settlement process to raise debt limits. According to a person familiar with the matter, one possible start is from a senator who explicitly booked to make a decision on that topic in her final guidance on including a debt cap in the existing settlement process. May come. This could gain support for suspending debt restrictions until a certain date and protect themselves from being associated with a certain amount of debt increase if the Democratic Party formally seeks a ruling. It suggests that there is sex.

Even if the Senate’s top Republicans say they won’t vote again to raise their debt caps through the normal process, Democrats could try to regain Republican support.

Write to Siobhan Hughes at siobhan.hughes@wsj.com

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Homes set to temporarily raise debt limits

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