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With the imminent default, the Democratic-controlled House of Representatives is expected to approve a bill to increase the debt limit.
Democrats in the U.S. House of Representatives will approve an increase in the borrowing limit of the U.S. government by $480 billion to prevent the settlement of U.S. expenditures and debts with Republicans before December.
House Majority Leader Hoyer announced that a bill to raise the US debt ceiling to $28.9 trillion is scheduled for voting on Tuesday night.
Hoyer said: “It is shocking that our country is placed in this situation, but we must take immediate action to resolve the debt ceiling issue and ensure that the full confidence and credit of the United States is intact.”
U.S. Treasury Secretary Janet Yellen warned that the U.S. will run out of cash to repay debt as early as October 18, and economists and Business leaders say The U.S. default will have devastating consequences for the global economy.
The bill passed in the Senate last week Republicans agreed to assist The Democrats overcome procedural obstacles. It is expected that President Joe Biden will soon sign into law.
The short-term extension will allow the U.S. Treasury Department to issue bonds before early December to fund government operations, but Senate Republican leader Mitch McConnell said his party will not help Democrats pass a longer-term solution.
In a letter to Biden on Friday, McConnell wrote: “I will not participate in any future efforts to alleviate the consequences of the Democratic Party’s mismanagement.”
Moody’s Analysis warned in a recent report that if Congress fails to extend the U.S. debt ceiling, “the global financial market and economy will be disrupted. Even if it is resolved quickly, Americans will pay for such defaults for generations. cost”.
Democratic House Speaker Nancy Pelosi told reporters on Tuesday that she hopes that despite the opposition of the Republican Party, the issue can be resolved in the future.
She said that a proposal made by the Democrats to allow the Treasury Department to raise the debt ceiling and give Congress veto power “justified.”
At the same time, Democrats, who control only a small majority in the US Congress, are working hard to advance Biden’s domestic agenda.
A bipartisan infrastructure bill worth $1 trillion passed by the Senate stalled in the House of Representatives, and Democratic senators could not unite and support Biden’s proposed budget of $3.5 trillion.
Pelosi said on Tuesday that she was “disappointed” but expected the president’s proposed spending on climate, health care and employment to be reduced to about $2 trillion.
Pelosi said: “We have to make some important decisions in the next few days so that we can continue.”
In addition to solving the debt ceiling issue, the Democratic Party also needs to pass financing legislation in early December to avoid Government shut down.
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