Democrats and Republicans may again be facing a debt ceiling dispute in a few weeks.
The United States the House of Representatives has given its approval to raising the country’s debt ceiling. The law on the matter will leave next to the president Joe Biden for approval.
Last week, the Senate decided to raise the country’s debt ceiling until December, providing a temporary solution to the dispute between Democrats and Republicans. However, the decision still required the approval of the House of Representatives.
The current U.S. debt ceiling is $ 28,400 billion. Politicians agreed to raise the debt ceiling by $ 480 billion. Without an agreement, federal money was feared to run out as early as October and the economy would drift into recession.
Debt roof raising was voted in both the Senate and the House of Representatives by party line. In the Senate, the matter was passed by a vote of 50 to 48. Democrats were in favor of the rise, with Republicans opposing it. Two Republicans abstained.
In the House of Representatives, raising the debt ceiling received 219 yes votes from Democrats. None of the 206 Republican congressmen supported the withdrawal.
Raising the debt ceiling until December means that Democrats and Republicans may once again have a dispute over the debt ceiling in a few weeks.
Congress previously estimated that an updated debt ceiling would be reached by the third day of December. However, economists’ assessments are somewhat more positive, and the new debt ceiling is expected to hit around mid-December or early January.
Federal the debt ceiling was decided about 80 years ago. However, the ceiling has since been raised dozens of times. Usually, the withdrawals have received the support of both parties and have not involved any drama.
This time, however, Republican decision-makers have opposed and refused to support Biden’s plans for taxation and spending, which Republicans describe as “reckless”.
In reality, raising the debt ceiling does not give approval to new spending. Instead, it is only meant to ensure that the state gets to pay the costs that Republicans and Democrats have already agreed on in the past.
The same thing was emphasized on Tuesday by the Democratic Speaker of the House of Representatives Nancy Pelosi. He emphasized that the withdrawal was linked to previously agreed commitments, including the corona subsidies approved last year under the previous administration.
“Only three percent of the current debt we’re dealing with now arose during Biden’s time,” Pelosi underlined.
Congress has also increasingly called for the debt ceiling to be moved out of party politics and for the matter to be left to the Ministry of Finance in the future. According to Pelos, there seems to be some interest in the proposal from both parties.