Senate Democrats narrowly passed legislation on Tuesday raising the federal debt ceiling by $2.5 trillion, clearing the biggest hurdle in Congress to allowing President Biden …
Senate Democrats narrowly passed legislation on Tuesday raising the federal debt ceiling by $2.5 trillion, clearing the biggest hurdle in Congress to allowing President Biden to continue borrowing money to pay for government expenditures until at least early 2023. The bill, which now heads to all but certain passage in the Democrat-run House, would push the national debt limit to $31.4 trillion from its current limit of roughly $29 trillion. In a 50-49 vote, Senate Democrats eked the bill through a chamber that is evenly split between the two parties. “Responsible governing has won on this exceedingly important issue,” said Senate Majority Leader Charles E. Schumer, New York Democrat. “The American people can breathe easy and rest assured there will not be a default.” Senate Republicans opposed the bill, arguing that because Mr. Biden was undertaking a massive “spending spree” with his roughly $1.74 trillion social welfare and climate bill, Democrats alone were responsible for making more spending possible by raising the debt limit. “This massive debt increase will just be the beginning,” said Senate Minority Leader Mitch McConnell, Kentucky Republican. “More printing and borrowing to set up more reckless spending to cause more inflation to hurt working families even more. What the American people need is a break.” The House is expected to pass the bill. Treasury Secretary Janet Yellen warned that the U.S. will be at risk of defaulting on its debts if the cap is not raised by Dec.15. Once passed by the House, Mr. Biden is expected to sign the measure immediately. The debt ceiling increase would ensure the White House can continue borrowing money to pay for federal expenditures until at least early 2023. Economists warn that mounting national debt, if left unchecked, can spur an economic disaster. Both parties, when in power, have piled on the debt over the past two decades. “While it’s hard to predict the exact moment the national debt became a ticking time-bomb, the experiences of countries like Greece show that ignoring the problem can have disastrous consequences,” said Matthew Dickerson, the director of the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget.
