The Oklahoman

House sends debt limit hike to Biden, stops default

Relief from bill’s passage will be temporary

- Kevin Freking

WASHINGTON – Members of the House on Tuesday pushed through a short-term increase to the nation’s debt limit, ensuring the federal government can continue fully paying its bills into December and temporaril­y averting an unpreceden­ted default that would have decimated the economy.

The $480 billion increase in the country’s borrowing ceiling cleared the Senate last week on a party-line vote. The House approved it swiftly so President Joe Biden can sign it into law this week. Treasury Secretary Janet Yellen had warned that steps to stave off a default on the country’s debts would be exhausted by Monday, and from that point, the department would soon be unable to fully meet the government’s financial obligation­s.

A default would have immense fallout on global financial markets built upon the bedrock safety of U.S. government debt. Routine government payments to Social Security beneficiaries, disabled veterans and active-duty military personnel would also be called into question.

The relief provided by passage of the legislatio­n will only be temporary, forcing Congress to revisit the issue in December when lawmakers will also be laboring to complete federal spending bills and avoid a damaging government shutdown. The yearend backlog raises risks for both parties and threatens a tumultuous close to Biden’s first year in office.

“I’m glad that this at least allows us to prevent a totally self-made and utterly preventabl­e economic catastroph­e as we work on a longer-term plan,” said Rep. Jim McGovern, D-Mass.

Republican­s signaled the next debt limit debate won’t be any easier and warned Democrats not to expect their help.

“Unless and until Democrats give up on their dream of a big-government, socialist America, Republican­s cannot and will not support raising the debt limit and help them pave the superhighw­ay to a great entitlemen­t society,” said Rep. Tom Cole, R-Okla.

Procedural­ly, the House took a single vote Tuesday that had the effect of passing the Senate bill. The measure passed by a party-line vote of 219-206.

The present standoff over the debt ceiling eased when Senate Republican leader Mitch McConnell, R-Ky., agreed to help pass the short-term increase. But he insists he won’t do so again.

In a letter sent Friday to Biden, McConnell said Democrats will have to handle the next debt-limit increase on their own using the same process they have tried to use to pass Biden’s massive social spending and environmen­t plan. Reconcilia­tion allows legislatio­n to pass the Senate with 51 votes rather than the 60 that’s typically required. In the 50-50 split Senate, Vice President Kamala Harris gives Democrats the majority with her tiebreakin­g vote.

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 office, saying she had no intention of supporting lifting the debt ceiling to enable Republican­s to give another tax break to the rich.

Republican­s in 2011 managed to coerce President Barack Obama into accepting about $2 trillion in deficit cuts as a condition for increasing the debt limit – though lawmakers later rolled back some of those cuts.

Pelosi said Tuesday that over the years Republican­s and Democrats have voted against lifting the debt ceiling, “but never to the extent of jeopardizi­ng it.”

Pelosi offered her hope that Congress would lift the debt ceiling in a bipartisan way this December because of the stakes involved. But she also floated a bill sponsored by Rep. Brendan Boyle, D-Pa., that would transfer the duty of raising the debt limit away from Congress and vest it with the Treasury secretary, saying, “I think it has merit.”

In his focus on the debt limit, McConnell has tried to link Biden’s big federal government spending boost with the nation’s rising debt load, even though they are separate and the debt ceiling will have to be increased or suspended regardless of whether Biden’s $3.5 trillion plan makes it into law.

 ?? J. SCOTT APPLEWHITE/AP ?? Speaker of the House Nancy Pelosi, D-Calif., said that over the years Republican­s and Democrats have voted against lifting the debt ceiling, “but never to the extent of jeopardizi­ng it.”
J. SCOTT APPLEWHITE/AP Speaker of the House Nancy Pelosi, D-Calif., said that over the years Republican­s and Democrats have voted against lifting the debt ceiling, “but never to the extent of jeopardizi­ng it.”

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