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Senate fends off U.S. debt disaster and votes to extend borrowing

Washington (AP) —Thursday night, Senate avoids U.S. debt disaster, extends government borrowing power to December, experts say it devastates the economy and harms millions of Americans Voted to temporarily avoid unprecedented federal defaults that warned.

A 50-48 vote in support of a bill that would raise the government’s debt cap by about $ 5 trillion provided immediate relief in Washington and beyond. But it just provides an amnesty. Assuming the House of Representatives is on track, Republicans and Democrats will need to tackle the deep difference on this issue again by the end of the year.

The debate takes place as legislators work to fund the federal government for the new fiscal year and continue to fight fiercely over President Joe Biden’s national top priorities. A much larger $ 3.5 trillion effort focused on health, safety net programs and the environment.

Republican Senate leader Mitch McConnell of Kentucky has eased the immediate crisis and is approaching a disastrous default in just a few weeks. He acted as Biden, and business leaders heightened their concerns that default would disrupt government payments to millions of Americans and plunge the country into recession.

The GOP concession was unpopular with some members of McConnell’s Republican caucuses who complained that the country’s debt levels were unsustainable.

Utah Senator Mike Lee said shortly before the vote, “We can’t vote to raise this debt cap at this time, especially given our plans to increase spending by another $ 3.5 trillion soon. “.

Texas Senator Ted Cruz said the Democrats were on the “road to surrender” in the process used to raise debt caps, “and unfortunately, the Republicans blinked yesterday.” ..

But Alaska’s Senator Lisa Murkowski was among those who voted to advance the bill.

“I don’t want to get this train off the cliff,” she said.

Congress has only a few days to act by the deadline of October 18. The Treasury then warned that there would soon be a shortage of funds to handle the country’s already incurred debt burden.

The House of Representatives is likely to return next week to approve the bill.

Republican leaders held a private chat late in the afternoon and worked all day to find the 10 votes needed by the party to advance the debt limit extension to the final vote. Senator Josh Hawley of Missouri said it was a long “lively” debate in the room.

McConnell said he would allow all views to air and eventually vote in favor of the senator.

The White House has expressed its support for Biden, and Deputy Press Secretary Karine Jean-Pierre said she will sign a bill to raise debt limits when the president passes parliament. Rocking Republicans, she also “give us some breathing from the devastating defaults we were approaching for the decision that Senator McConnell would do our economy and politics.” said.

Wall Street rebounded modestly on Thursday with news of the deal.

The agreement sets the stage for some sort of sequel in December. Congress faces again the imminent deadline of funding the government and raising debt limits before returning home for vacation.

The $ 480 billion increase in debt caps is at the level the Treasury said needed to reach safety on December 3.

“Thanks to a Democratic colleague who has shown unity to resolve the crisis manufactured by this Republican Party,” said Chuck Schumer, leader of the Senate majority in New York. “Despite immense opposition from McConnell leaders and members of his conference, our caucuses united and pulled our country back from the edge of the cliff where the Republicans tried to push us in. I did. “

McConnell saw it quite differently.

“The path accepted by Democratic colleagues is to clear the majority’s excuse that Americans have escaped the short-term crisis and at the same time didn’t have time to deal with debt restrictions through (reconciliation),” McConnell said. Let’s do it. ” “There is no doubt now. They have plenty of time.

McConnell and his Senate Republicans still argue that the Democratic Party will do it alone to raise its debt cap in the long run.In addition, McConnell argued that Democrats would use the same cumbersome legislative process they went through, called reconciliation. $ 1.9 trillion COVID-19 bailout bill Adopted to try to pass Biden’s $ 3.5 trillion measurement Support safety nets, health and environmental programs.

On Wednesday, Biden said that as the deadline approached, it created a historic default risk like a “meteor” that could crush the U.S. economy and send waves of damage around the world, and immediately suspend debt restrictions. We asked top business leaders to promote.

At a White House event, the president embarrassed Republican senators for threatening to filibust the $ 28.4 trillion cap. He is devoted to the credibility of the company’s America (a group that has traditionally worked with the GOP on tax and regulatory issues), as the leaders of Citi, JPMorgan Chase, and Nasdaq get together in person and effectively say debt. bottom. You need to lift the restrictions.

“That’s not right and dangerous,” Biden said of resistance by Senate Republicans.

Once a routine problem, raising debt limits has been politically endangered over the past decade, especially by Republicans to counter rising government spending and debt burdens.

https://www.wkrg.com/washington-dc/senate-dodges-us-debt-disaster-voting-to-extend-borrowing/ Senate fends off U.S. debt disaster and votes to extend borrowing

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