The US House of Representatives has approved and is advancing the bill on increasing the loan ceiling, which will save the country’s and also the world’s economy, the news agency writes Reuters.
The Republican-controlled House of Representatives, with 314 votes for and 117 against, sent the bill to the Senate, which must approve it and send it to US President Joe Biden for signature by the morning of Monday, June 5 at the latest. This is when the federal government will run out of funds to pay its obligations.
Biden said after the vote: “This is good news for the American people and for the American economy. I urge the Senate to consider the bill as soon as possible so that I can sign it.”
The new measures are a compromise between Biden and House Speaker Kevin McCarthy and were opposed by 71 staunch Republicans. That might have been enough to block the bill, but the support of 165 Democrats allowed the additions to move forward. Republicans control the House of Representatives by a narrow margin of 222 to 213 Democrats.
The bill seeks to postpone (in reality – temporarily cancel) limits on federal government borrowing
until January 1, 2021. This will allow Biden and Congress to postpone the politically risky issue until after the November 2024 US presidential election. The next two years are expected to see curbs on government spending, speeding up permitting for certain energy projects, a government reallocation of pandemic relief funds and expanded requirements for food aid programs.
Conservative Republicans wanted tighter spending limits and sharper reforms. Rep. Chip Roy said, “At best, we’ve got a two-year spending freeze full of backtracking and gimmicks.”
Progressive Democrats, who along with Biden have held on to a desire to raise the debt ceiling, oppose the bill for a number of reasons, including the fact that the government’s programs to fight the deficit will have stricter operating conditions. Democrat Jim McGovern said on May 31:
“Republicans are forcing us to decide which vulnerable groups of Americans will go without food,
or they will push us into default. It’s just not right.”
Representatives of both parties in the Senate have indicated that they will try to get the bill into effect before the weekend, however, delays in the votes may complicate the course of events. Republican Majority Leader Chuck Schumer said it was simply not possible to send something back to the House for reconsideration because it was necessary to avoid a default. The vote may also drag on over the weekend, especially if one of the senators raises objections and tries to slow down the process.
Most of the savings will come from cutting domestic policy programs, such as reduced support for housing programs, education, scientific research, and the like.
Read also: Debt ceiling talks between Democrats and Republicans so far without result
2023-06-01 06:10:27
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