Lexington-Fayette, Kentucky 2021-10-07 15:53:34 –
Washington — Senator Chuck Schumer (DN.Y.) And Senator Mitch McConnell (RK.Y.) Agreed to Temporarily Raise Debt Limits and Avoid Defaults by the Ministry of Finance Reached.
“Republican and Democratic members and staff negotiated overnight,” McConnell said on the Senate floor this morning.
“We have reached an agreement to extend the debt cap,” Schumer proudly said on the floor.
The country was set to default on October 18, unless Congress raised its debt limits. This allows the country to pay the country’s invoice.
Neglect temporarily puts everything from social security checks to military payments to child tax credit payments at risk.
The bipartisan agreement temporarily saved the country from the economic crisis, but it did not solve the problem in the long run.
The discussion will come back soon
The agreement will only increase the debt limit by about $ 480 billion.
Senate aides said it would allow the country to pay the bill until December 3.
For now, it’s a new debt limit, but the Treasury may be able to use their resources to extend it for a few more weeks.
December 3 is exactly the same date that federal funds are due to expire, putting the country back at risk of possible closure.
Does this all sound familiar? This means that the same debate that has been taking place over the past few weeks will soon be revisited.
Do you need debt restrictions?
But does the United States need debt restriction rules? Some say no and it’s time to get rid of the rules and arguments.
“Ending the Threat of Default Law” HR3305 was introduced to Congress by some members.
If it passes, it will no longer require Congress to raise its debt limits.
Treasury Secretary Janet Yellen was asked about it last week and whether she would support the idea.
“Yes, I think it’s very destructive to put the president in a place where we can’t pay the bill,” Yellen said.
But so far, the law has not been seriously considered.
Instead, Congress seems to want to replay the conflict coming in December.
Republicans still want Democrats to raise their debt limits in the long run. Democrats want to continue dealing with debt in a bipartisan way.