Senate Majority Leader Charles Schumer (D-NY) speaks to reporters after the Senate Democrats luncheon at the U.S. Capitol on June 15, 2021 in Washington, DC.
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Congressional Democrats will move to raise the debt ceiling on Tuesday, a day before a December 15 deadline that Treasury Secretary Janet Yellen warned could mark the beginning of America’s first default.
The effort will begin in the Senate, where the Majority Leader Chuck Schumer, DN.Y., is expected to proceed with debt limit settlement early Tuesday afternoon. That procedural green light would mark the start of 10 hours of Senate debate allowed under the resolution, dividing the two sides.
Schumer said Tuesday morning that Democrats will likely cede part of their debate time to speed up the process. Although a vote could slip to evening time if Republicans use all their allotted time, house Democrats are expected to pass a debt ceiling increase before the end of the day. .
The bill will then move to the House of Representatives, where a narrow majority of Democrats are expected to pass it and send it to the President. Joe Biden’s late Tuesday or early Wednesday. He is expected to sign it just hours before the Treasury Department forecasts that it will run out of its tools to pay off government bills.
On Tuesday, Schumer said that the resolution the Senate will vote on would raise the debt limit “to a level commensurate with the funding needed through 2023.” He did not specify a dollar figure.
Yellen estimates the United States will run out of ways to repay its debt by December 15. If Congress does not raise the debt ceiling before the Treasury Department misses a payment, the country will default on its debt for the first time. The Treasury Secretary said she expects the US to fall into a recession if Washington defaults on its debts.
A default will not appear later 14 Republicans joined every Democrat last week allowed a one-time vote to lift the debt ceiling with a simple majority. The agreement, created by Schumer and Minority Leader Mitch McConnell, R-Ky, ended the GOP’s months-long threat to cancel a loan limit increase.
The deal would allow Democrats to raise the debt limit on their own without the 60 votes typically required to break a dispute. In the 50-50 party split Senate, Democrats will likely need the backing of every member of their caucus, as well as Vice President Kamala Harris, to push the bill.
Democrats are expected to increase the borrowing limit by at least $2 trillion. The measure will likely put the country through the midterm elections in November.
Democrats and Republicans often vote together to raise or suspend the debt ceiling. This time, however, the GOP argues that Democrats should raise the borrowing limit on their own as they try to pass a $1.75 trillion climate and social safety net package despite objections from the government. Republican Party.
“Honestly, I think some of these programs would be a bad idea if the money were free,” Senator Pat Toomey, a Pennsylvania Republican, said of the Democrats’ Build Back Better plan. host on CNBC’s “Squawk Box” Tuesday morning.
“The idea that we’re going to throw thousands, thousands, and thousands of dollars at high-income American families who have more than twice the median income. We’ll give them programs. free program and free money because they have a kid – what is that really achieving?” added Toomey. “In addition to undermining personal responsibility and independence?”
Raising the debt limit does not allow for new government spending. Instead, it’s like increasing a consumer’s credit card limit and allowing the Treasury Department to continue paying the nation’s bills.
Yellen has often noted that Republicans and Democrats will have to raise or suspend the debt limit even if Congress passes law zero in 2021.
