US Economy: Democrats Look To Raise Debt Ceiling, Fund Government Through Dec 3
Congressional Democrats unveiled legislation on Tuesday that aims to prevent a government shutdown, fund the government through Dec. 3 and suspend the national debt limit until December 2022.
The bill is set to include $28.6 billion for natural disaster relief and $6.3 billion in funding for Afghan refugees, The Hill reports. Though the bill is expected to easily pass through the House, it is also set to run into a GOP-backed roadblock in the Senate, which would kill it unless 10 Republicans were willing to vote in favor. That seems unlikely, as Senate Minority Leader Mitch McConnell has said his party will be willing to vote for a short-term funding bill that does not include a debt limit suspension.
"Since 2011, every time the debt limit has needed to be raised, Congress has addressed it on a bipartisan basis, including three times during the last administration," House Speaker Nancy Pelosi, D-Calif., said about the bill, according to CNN. "When we take up the debt limit this month, we expect it to be bipartisan once more."
“By extending funding through Dec. 3, this legislation will allow Congress to negotiate full-year government funding bills that make historic and transformative investments to benefit working families. As we take that step today, providing help for people in desperate need is a moral imperative,” House Appropriations Committee Chairwoman Rosa DeLauro, D-Conn., said in a statement.
Washington is moving toward a debt ceiling crisis that could have severe consequences. Among the things that could be at stake are federal payments to millions of people, including government workers, as well as Medicare and Social Security payments. Military salaries would also be halted.
"We are just now emerging from crisis," Treasury Secretary Janet Yellen wrote. "We must not plunge ourselves back into an entirely avoidable one."
Walmart president and CEO Doug McMillan also wrote to Congressional leaders in September that failing to raise the debt ceiling would produce an “avoidable crisis” and pose an “unacceptable risk” to the nation’s economic growth.
Sen. John Kennedy, R-La., said he would consider voting for the Democratic proposal because it would offer hurricane relief for his home state but made it clear nine other Republicans would not join him.
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