July 7, 2022

Passes the Home Finance, Debt Ceiling Bill

Speaker Nancy Pelosi (T-CA) held her weekly press conference on August 25, 2021 at US Capital in Washington, DC.

Kevin Dietsch | Getty Images

The government on Tuesday passed a bill that would suspend the credit limit as a step to prevent a government shutdown and a possible economic catastrophe.

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

When the bill goes to the Senate, Republicans threaten to block it, prompting Democrats to find another way to avoid a loss of federal funds — or the first installment of U.S. debt. Concerns about impending default and the economic damage it will cause The U.S. stock market contributed to the fall on Monday.

Congress must pass a financial plan to prevent a freeze by September 30th. Separately, Treasury Secretary Janet Yellen told congressional leaders that the United States would occasionally exhaust all options to pay its bills in October.

The House-passed plan will keep the government running until December 3. This will lift the credit ceiling to December 2022.

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

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Senate Minority Leader Mitch McConnell, R-Guy.

While Democrats have pointed out that the GOP has signed the biggest emergency corona relief bills since the last debt ceiling was suspended, Republicans have said their colleagues should take action to prevent installments themselves as they prepare to pass a massive spending bill without the GOP.

Ahead of the House vote, Senate Majority Leader Chuck Schumer, DNO, warned Republicans that failing to raise the debt ceiling would destroy important government benefits, such as the economy and 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 Democrats will react if the law fails in the Senate.

They could combine the debt ceiling suspension with the $ 3.5 trillion budget reconciliation bill. Doing so will add further steps to the already confusing and time consuming process.

Central to President Joe Biden’s domestic agenda, the project will make massive investments in the social security web and climate policy. Republicans want the Democrats to combine the debt limit suspension with a comprehensive bill that Democrats want to pay through tax increases on corporations and the rich.

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