Democrats plan to suspend debt ceiling in fundraising bill



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House Speaker Nancy Pelosi, D-Calif., Hosts a press conference at the Capitol Visitor Center with House Democrats on accomplishments including the For The People Act and the agenda for the rest of the year, Friday July 30, 2021.

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

Democratic leaders in Congress said on Monday they would try to pass a bill that would both prevent the government shutdown and suspend the U.S. debt limit as they try to avoid two possible crises of a one shot.

Congress faces a September 30 deadline to fund the federal government. Separately, Treasury Secretary Janet Yellen told lawmakers the United States likely wouldn’t be able to pay its bills in October if Congress didn’t suspend or increase the debt ceiling.

The House plans to vote this week on legislation that addresses both issues. The bill would fund the government until December and suspend the debt ceiling until the end of 2022, said House Speaker Nancy Pelosi, D-Calif., And Senate Majority Leader Chuck. Schumer, DN.Y., in a joint release.

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The fate of the bill is uncertain. Republicans have said they will not join Democrats in voting to suspend the debt ceiling, raising fears of a default that could devastate the global economy.

Pelosi and Schumer said on Monday that the GOP had an obligation to meet the debt limit because the party helped push through sprawling coronavirus aid plans last year.

“Tackling the debt limit is about meeting obligations the government has already taken on, like December’s bipartisan COVID emergency relief legislation as well as life-saving payments to Social Security recipients and our elders. fighters, “they said, adding that a default” could plunge the country into recession. “

Democrats also noted that the funding bill will include relief funds for a recent round of natural disasters – which could make it more appealing to GOP lawmakers who represent storm-hit states. Senator John Kennedy, R-La., Told NBC News he was inclined to support a fundraising bill that includes a debt ceiling suspension because it would include “critical” relief funding for his State, which was recently hit by Hurricane Ida.

Senatorial Minority Leader Mitch McConnell, R-Ky., Tried to force Democrats to suspend the debt ceiling on their up to $ 3.5 trillion bill to invest in the safety net social and climate policy. He did not back down from his post on Monday.

“They have all the tools to tackle the debt limit on their own,” he said.

McConnell has said his party will vote for a short-term government funding bill that does not include a suspension of the debt ceiling.

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