The Senate was close on Wednesday evening to a short-term deal to raise the debt limit, postponing for a few months a showdown over how to craft a longer-term extension of the nation’s borrowing cap.
Senate Minority Leader Mitch McConnell’s compromise offer to have Republicans vote for a short-term fix — which Democrats signaled they would accept — would end a standoff over the issue but likely saddle Democrats with a politically toxic vote. However, the deal also averts the potential of an economic crisis when the federal government begins running out of funds, which Treasury Secretary Janet Yellen has said would occur on Oct. 18.
Republicans could tie the debt-limit vote to the Democrats’ Build Back Better plan, which has been pegged at $3.5 trillion but is currently under discussion at around $2.1 trillion, even though the debt limit needs to be raised to allow the government to pay off debts incurred by past spending, a good portion of it by Republicans and former President Donald Trump.
McConnell and Republicans used the threat of a filibuster to force Democrats to bargain over the agreement, since Democrats have a slim 50-seat majority and can break ties only with the help of Vice President Kamala Harris. Because McConnell had all 50 Republican senators united behind him, he was able to deprive Majority Leader Chuck Schumer of the 10 votes he needed to raise the debt ceiling along normal lines, under which a dollar amount is not normally explicitly included.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Senate Democrats plan Wednesday vote on debt limit, but Republicans set to block againThe Senate is poised to vote on ending debate on a House-passed bill that would suspend the federal borrowing limit, even as Republican senators were expected to put up another roadblock.
Source: MarketWatch - 🏆 3. / 97 Read more »
Senate GOP leader McConnell may offer short-term debt ceiling extension following pressure from BidenPresident Joe Biden and Democratic leaders in Congress amped up pressure on Republicans to act on the debt limit. This guy was in the sequel to Silence of Lambs “Hannibal” and they ate his face! The pressure is that we CANNOT default, & everyone would suffer regardless of party if we do not raise it, lose-lose
Source: CNBC - 🏆 12. / 72 Read more »
Biden: 'Real possibility' Democrats might change Senate rules for debt hikePresident Joe Biden said on Tuesday that his Democrats might make an exception to a U.S. Senate rule to allow them to extend the government's borrowing authority without Republican help, which could head off an economically crippling debt default. Well, let's see how this gonna end up... Just get it done through reconciliation man! There is no positives here for the Democrats, and the Hell would freeze over before any Republicans help the Democrats pay the bill for the debt they incurred during the last administration! DNC have the ability to raise the debt ceiling alone. But they won't do it. They even delayed it to make republicans vote GOP CAN vote but they don't. Both are delaying the vote. Both are to blame. Both are corp. bailout unpatriotic traitors to the American people SenateFloor
Source: Reuters - 🏆 2. / 97 Read more »
Biden: Senate filibuster change on debt a 'real possibility'To get around Republican obstruction, President Joe Biden said Tuesday that Democrats are considering a change to the Senate's filibuster rules in order to quickly approve lifting the nation's debt limit and avoid what would be a devastating credit default. The president's surprise remarks come as the Senate is tangled in a fiscally dangerous standoff over a vote that's needed to suspend the nation's debt limit and allow the federal government to continue borrowing to pay down its balances. Biden has resisted any filibuster rule changes over other issues, but his off-the-cuff comments Tuesday night interjected a new urgency to an increasingly uncertain situation. why you dont say Bout time
Source: YahooNews - 🏆 380. / 59 Read more »