On Tuesday, the House successfully passed a bill for suspending the national debt ceiling and avoid a shutdown of the government. This was a major step toward avoiding a possible calamity economically.
There Is Still Ways To Go Till The Debt Ceiling Is Raised
The chamber of the House passed the debt ceiling suspension bill by 220 votes for and 211 votes against it. It was supported by all Democrats and opposed by all Republicans.
However, the larger obstacle facing the debt ceiling suspension is the Republicans’ threat to block the bill when it arrives at the Senate. This might force Democrats to desperately search for some other way of avoiding a lapse in federal funding. Otherwise, it will first U.S. debt default in the history of the nation. On Monday, the concerns surrounding a potential looming default as well as the ensuing economic damage heavily impacted the stock market in the U.S.
To avoid shutdown, a plan for funding has to be passed by Congress by 30th September, latest. In a different timeline, the nation will run out of all methods of paying bills in October. Congressional leaders were informed of the deadline by Janet Yellen, the Secretary of the Treasury.
The plan passed by the house would ensure the government runs till 2nd December. Furthermore, the debt ceiling will be suspended till the end of 2022. The bill would further allocated $28.6Bn for relief in case of natural disasters. Another $6.3Bn will be allocated for resettling refugees from Afghanistan.
Mitch McConnell, the Leader of the Senate Minority, has repeatedly stated that Republicans will support funding bills that are standalone. They will never support legislation that has an attached debt ceiling suspension. This is a big source of worry for the Democrats.