US Congress works against the clock to approve debt

by time news

WASHINGTON (AP) – The United States Congress was meeting again Tuesday to debate lifting the short-term debt ceiling so the government can continue to pay its bills through December.

The lifting of the maximum debt for about 480,000 million dollars was approved by the Senate last week in a vote along partisan lines. The lower house is expected to pass it expeditiously so that President Joe Biden can sign it this week. Treasury Secretary Janet Yellen has warned that the government has until October 18 to approve the measure and that from then on the Treasury will not have the funds to meet financial obligations.

A default would have serious repercussions on world financial markets that depend on the reliability of the US public debt. Routine payments from the federal government to Social Security recipients, disabled veterans, and active military would be in question.

“It is unacceptable that our country has fallen into this situation, but we must take immediate action to deal with the debt limit and ensure that America’s reliability and credit remain intact,” declared the Democratic Majority Leader in the House. of Representatives, Steny Hoyer.

Still, the relief will be only temporary and Congress will have to reconsider the matter in December, at a time when lawmakers will also be considering federal spending bills and trying to avoid another government shutdown. The year-end delays pose risks for both parties and threaten to leave Biden ending his first year in office in great turmoil.

The current crisis was temporarily resolved when Senate Republican Leader Mitch McConnell agreed to pass the measure in the short term, but at the same time warned that he will not do so again.

In a letter sent to Biden on Friday, McConnell warned that Democrats will have to pass the new debt limit on their own, using a cumbersome legislative mechanism that allows bills to pass with 51 of 100 upper house votes, instead of 60. as is common. The Senate is currently split 50-50, but Vice President Kamala Harris has the power to vote for the tiebreaker.

In his statements on the debt limit, McConnell has tried to link the issue with the large public spending projects, although they are two different items and the debt ceiling would have to be lifted regardless of whether the economic package of 3.5 trillion of dollars is approved or not.

“His supporters on Capitol Hill now have the time they said they lacked to resolve the debt ceiling issue through the reconciliation mechanism and all the tools to do so,” McConnell stated in his letter to Biden.

“They will not be able to invent another crisis to ask me for help,” he added.

McConnell was one of 11 Republicans who voted with Democrats to lift the debt ceiling temporarily.

The agreement to resolve the matter, even temporarily, was abrupt. Republican senators said McConnell gave in to threats from Democrats to remove the rule requiring 60 votes to pass Senate bills.

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