House passes financing and debt ceiling bill

The House on Tuesday passed a bill that would both prevent a government shutdown and suspend the debt limit in a step toward preventing possible economic calamity.

The chamber approved the plan by a vote of 220-211. All Democrats voted for and all Republicans opposed it.

As the bill heads to the Senate, Republicans threaten to block it, which could leave Democrats scrambling to find another way to avoid a federal funding deadline – or even a first default on the bill. American debt. Concerns about an impending default and the economic damage it would cause contributed to a beating in the U.S. stock market on Monday.

Congress must adopt a fundraising plan by September 30 to prevent a shutdown. Meanwhile, the United States will exhaust all options to continue paying its bills sometime in October, Treasury Secretary Janet Yellen told congressional leaders.

The plan passed by the House would allow the government to operate until December 3. It would also suspend the debt ceiling until December 2022.

The bill would provide $ 28.6 billion for natural disaster relief and $ 6.3 billion for the resettlement of Afghan refugees.

Senatorial Minority Leader Mitch McConnell, R-Ky., Said Republicans would vote for a stand-alone funding bill, but not for legislation with a suspension of the debt ceiling.

While Democrats have pointed out that the GOP has approved huge bills for emergency coronavirus relief since the debt ceiling was last suspended, Republicans have said their counterparts should act to prevent the default on their own. payment as they prepare to pass a gigantic spending bill without the GOP.

Ahead of the House vote, Senate Majority Leader Chuck Schumer, DN.Y., warned Republicans that failure to raise the debt ceiling could wreak havoc on the economy and the benefits government essentials such as social security.

“It’s playing with fire. Playing with the debt ceiling is playing with fire and putting it on the backs of the American people,” he said Tuesday.

It is unclear how the Democrats would proceed if the legislation fails in the Senate.

They could tie a suspension of the debt ceiling to their $ 3.5 trillion budget reconciliation bill. It would add more steps to an already chaotic and time consuming process.

The proposal, the centerpiece of President Joe Biden’s national agenda, would make massive investments in the social safety net and climate policy. Republicans want Democrats to tie the suspension of the debt ceiling to the sprawling bill, which Democrats want to pay through tax increases on corporations and the wealthy.

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