House of Representatives Passes Financing, Debt Cap Bill

Speaker of the House Nancy Pelosi (D-CA) will resign after a weekly press conference at the US Capitol in Washington, DC on August 25, 2021.

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The House of Representatives passed the bill on Tuesday. The bill suspends debt restrictions as a step to prevent government closures and prevent the possibility of economic disasters.

The Chamber of Commerce approved the plan with 220-211 votes. All Democrats voted for it, and all Republicans opposed it.

When the bill goes to the Senate, Republicans threaten to stop it. This could keep Democrats looking for alternative ways to avoid the expiration of federal funds.Concerns about the looming defaults and the financial damage they cause Contributed to the plunge in the US stock market on Monday.

Congress must pass the financial plan by September 30 to prevent closure. Separately, Treasury Secretary Janet Yellen told parliamentary leaders that the United States would run out of all options to continue paying invoices during October.

The plan passed by the House of Representatives will continue to implement the government until December 3. It will also suspend the debt cap until December 2022.

The bill will invest $ 28.6 billion in relief from natural disasters and $ 6.3 billion in resettlement of Afghan refugees.

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Senate minority leader Mitch McConnell, R-Ky. Said the Republican Party would vote for an independent funding bill, but not a law with a suspension of debt restrictions.

Democrats have pointed out that the GOP has approved a huge emergency coronavirus bailout bill since the last debt cap suspension, but Republicans are preparing to pass a huge spending bill without the GOP, so they Said that their counterparts should work on their own to prevent defaults.

Prior to the House vote, Senate leader Chuck Schumer, DN.Y. Warned the Republicans that failure to raise debt caps could hurt important government interests such as economics and social security.

“This is playing on fire. Playing a game on debt cap is playing on fire and putting it behind the Americans,” he said on Tuesday.

It is unclear how the Democratic Party will proceed if legislation fails in the Senate.

They can attach a debt cap suspension to the $ 3.5 trillion budget adjustment bill. Doing so adds even more steps to the already chaotic and time-consuming process.

The proposal, which is the centerpiece of President Joe Biden’s domestic agenda, will make a major investment in social safety nets and climate policy. Republicans want the Democrats to link the suspension of debt restrictions to a vast bill that they want to pay through tax increases to businesses and the wealthy.

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House of Representatives Passes Financing, Debt Cap Bill

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