WASHINGTON (Reuters) – The U.S. Congress is expected to vote on Tuesday to raise the federal government’s $28.9 trillion debt limit, ending a months-long standoff between Republicans and Democrats that had raised the risk of an unprecedented default.
Party leaders did not say by how much they would lift the limit, but observers expected a hike of $2 trillion to $3 trillion to meet the federal government’s needs through the Nov. 8 midterm elections next year that will determine control of Congress.
The increase is needed in part to cover debt incurred during Republican Donald Trump’s presidency, when the debt rose by about $7.85 trillion, partly through sweeping tax cuts and spending to fight the COVID-19 pandemic.
Republicans have tried to link the vote to Democratic President Joe Biden’s $1.75 trillion “Build Back Better” bill to bolster the social safety net and fight climate change.
That fight and another self-created crisis, passing a bill to continue to fund the government through February, occupied much of Congress’ December, and members in both chambers are now eager to begin lengthy holiday breaks.
The Senate is due to vote first, possibly passing it with only Democratic votes under the terms of a deal worked out last week between the two parties’ leaders in the chamber. After that, the Democratic-controlled House of Representatives will vote on the bill, sending it to Biden for his signature.
U.S. Treasury Secretary Janet Yellen had urged Congress to hike the debt limit before Wednesday.
Votes to lift the country’s debt ceiling have taken place on a regular basis since World War One. But some lawmakers in recent years have grown squeamish at such legislation, fearing voter backlash.
Source: Reuters