After the Senate vote, the House is expected approve the measure Thursday. This will prevent a partial shutdown of the government when the new fiscal year starts Friday.
At the insistence Republicans, Democrats had to lift a suspension from the federal government’s borrowing limit. Janet Yellen, Treasury Secretary, states that if the debt limit isn’t raised by October 18, the country will likely experience a financial and economic crisis. Republicans claim that Democrats have the votes to increase the debt ceiling by themselves, and Republican leader Mitch McConnell insists they do.
The most pressing priority for Congress right now is to keep government operating after the current fiscal year closes at midnight on Thursday. Expected approval of the bill will give lawmakers more time for crafting spending bills to fund federal agencies as well as the programs they administer.
Currently, Democrats are trying to figure out how to bring President Joe Biden’s top domestic priorities to the fore. These include a bipartisan bill for infrastructure that includes $550 billion in new funding for roads, bridges and broadband, and , a $3.5 trillion list of social, health, and environmental programs.
“With so many important issues to address, the American people don’t need a government shut down right now,” stated Chuck Schumer (D-N.Y.), Senate Majority Leader.
Schumer stated that the legislation providing temporary spending will provide assistance to those affected by Hurricane Ida or other natural disasters, as well as funding for Afghan evacuees from during the 20-year conflict between the U.S.A. and the Taliban.
It has become almost a routine for lawmakers to take action in the last hours of the day to prevent a partial shutdown. This time, the funding bill was delayed by disagreements over whether or not it should be allowed to assume more debt to continue meeting its financial obligations. The borrowing limit is currently set at $28.4 Trillion.
In modern times, the U.S. has not defaulted on its debts and both political parties have historically voted to increase the limit. During Donald Trump’s presidency, Democrats joined the Republican Senate Majority in raising the limit three times. The Democrats tried to address both of these priorities with one bill this time, but the Senate Republicans opposed that Monday.
The federal government can raise or suspend the debt limit to meet obligations that have been incurred. It does not allow for new spending. McConnell argued that Democrats should pass an extension of the debt limit with the same budgetary tools used to pass a $3.5 trillion effort for social safety net expansion and climate change mitigation.
McConnell stated that there is no history of bipartisan cooperation in doing this. McConnell spoke to reporters about past debt ceiling hikes. “Sometimes we have, and other times we haven’t.”
House Democrats were unhappy about the steps they were forced to take when they approved a separate bill that would suspend debt ceiling until December 2022. The bill now goes to the Senate. It is almost certain that it will be blocked by , a Republican filibuster.
Republican House Rules Committee Chairman Jim McGovern (D-Mass.) stated that he was more concerned in punishing Democrats than in preserving credit. “The idea that we shouldn’t pay bills because we don’t like (Biden)’s policies is a bad way to go.”
Republicans weren’t deterred. They claimed that Democrats had chosen to push through their political priorities and are therefore responsible for raising the debt limit.
Rep. Tom Cole (R-Okla.) stated that “So long the Democratic majority insists on spending money hand in fist,” he said.
McGovern stated that Trump’s Republicans had ballooned their debt and are now ignoring the consequences.
McGovern stated that “Republicans have now rediscovered debt.” “Where were you for the past four years?”
Although the Treasury has taken steps in order to preserve cash, once it runs out it will have to rely upon incoming revenue to meet its obligations. This would lead to delays in payments to Social Security recipients and veterans, as well as government workers, military personnel, and other workers. Bipartisan Policy Center, an independent think tank, estimates that 40% to 40% of federal payments will not be made in the weeks ahead.
