x

You’ve reached your limit of free articles for this month.
Get unlimited access to The National Herald,
starting as low as $7.99/month for digital subscription & $5.99/month for a delivery by mail subscription

Politics

Biden Signs Debt Limit Hike, but December Standoff Looms

October 15, 2021

WASHINGTON — President Joe Biden on Thursday signed into law a bill raising the nation’s debt limit until early December, delaying the prospect of an unprecedented federal default that would cause economic disaster.

The House passed the $480 billion increase in the country’s borrowing ceiling on Tuesday, after the Senate approved it on a party-line vote last week. The eventual approval came after a protracted standoff with Senate Republicans, who derailed initial Democratic efforts with filibusters, delays that require 60 votes to halt.

Ultimately, a handful of Senate Republicans agreed to join Democrats and voted to end GOP delays and move to a final vote on the legislation, but Minority Leader Mitch McConnell has said Republicans will offer no support for another increase in December.

Treasury Secretary Janet Yellen had warned that the U.S. would hit its borrowing limit Monday, an unprecedented situation that she and others cautioned could lead to economic catastrophe for a nation still reeling from a global pandemic. Routine government payments to Social Security beneficiaries, disabled veterans and active-duty military personnel would potentially be delayed, and the economic fallout in the U.S. could ripple through global markets.

The passage of the short-term debt ceiling increase ensures that, for now, the U.S. will continue to meet its obligations. But it sets up another potential cliff at the end of the year — at a time when lawmakers will also be working to pass a federal funding bill to avert a government shutdown.

Republicans have said Democrats should use a budgetary maneuver to pass an increase in the debt limit without Republican support, like the process Democrats are using for Biden’s massive climate change and social safety net plan. But Democrats have resisted that option. The clash between the two parties leaves Congress without a clear solution to avert the next default deadline in December, but the White House has emphasized it is still pursuing a bipartisan increase.

Lawmakers from both parties have used the debt ceiling votes as leverage for other priorities. House Speaker Nancy Pelosi threatened to vote against raising the debt ceiling when President Donald Trump was in office, saying she had no intention of supporting lifting the debt ceiling to enable Republicans to give another tax break to the rich. And Republicans in 2011 managed to coerce President Barack Obama into accepting about $2 trillion in deficit cuts as a condition for increasing the debt limit — though lawmakers later rolled back some of those cuts.

RELATED

SAN MARCOS ATEXQUILAPAN, Mexico — Clutching rosaries, residents of this mountain village stared at photographs of three of their own atop the altar at the local church, praying that teenagers Jair, Yovani and Misael were not among the 53 migrants who perished inside a stifling trailer in Texas.

Top Stories

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

General News

PHILADELPHIA – The Federation of Hellenic Societies of Philadelphia and Greater Delaware Valley announced that the Evzones, the Presidential Guard of Greece will be participating in the Philadelphia Greek Independence Day Parade on March 20.

Video

Woman Fatally Shot while Pushing Stroller on Upper East Side

NEW YORK — A 20-year-old woman was fatally shot Wednesday night while she pushed her infant daughter in a stroller on the Upper East Side, police said.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.