Democrats to suspend debt ceiling in fundraising bill

Democrats to suspend debt ceiling in fundraising bill

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

Tom Williams | CQ-ROLL CALL, INC. | Getty Images

Democratic leaders in Congress said on Monday they would seek to pass a bill that both blocks the government shutdown and suspends the U.S. debt limit as they attempt to avoid two potential crises in one. cut.

Congress faces a September 30 deadline to fund the federal government. Separately, Treasury Secretary Janet Yellen told lawmakers the United States would not be able to pay its bills in October if Congress did not suspend or increase debt limits.

The House plans to vote on legislation dealing with the two issues this week. The bill will fund the government until December and suspend debt limits until the end of 2022, said House Speaker Nancy Pelosi, D-Cal., And Senate Majority Leader. , Chuck Schumer, DY, in a joint release.

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Bill’s fate is uncertain. Republicans have said they will not join Democrats in voting to suspend the debt ceiling, citing the possibility of a devastating default in the global economy.

Pelosi and Schumer said on Monday that the GOP has an obligation to tackle the debt ceiling because the party helped pass the coronavirus aid plans last year.

‚ÄúRedressing the debt limit means meeting obligations already taken on by the government, such as the bipartisan COVID emergency aid law of December as well as large payments to social security beneficiaries and our veterans. “, did he declare. That a default could “plunge the country” into recession.

Democrats also noted that the fundraising bill would include relief funds for a recent spate of natural disasters – which could make it more appealing to GOP lawmakers who represent storm-hit states.

Senatorial Minority Leader Mitch McConnell, R-Ky., Tried to force Democrats to suspend debt limits as part of his $ 3.5 trillion bill to invest in social safety nets and climate policy.

This story is developing. Please check for updates.

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