U.S. Senate to vote Tuesday on raising government’s debt limit By Reuters

U.S. Senate to vote Tuesday on raising government's debt limit
© Reuters. FILE PHOTO: Birds fly near the U.S. Capitol in Washington, U.S., October 4, 2021. REUTERS/Kevin Lamarque/File Photo

WASHINGTON (Reuters) – The U.S. Senate will vote on Tuesday to raise the federal government’s $28.9 trillion limit debt limit, avoiding an unprecedented default as soon as later this month, Senate Majority Leader Chuck Schumer said on Monday.

“The Senate will act tomorrow to prevent default,” Schumer, a Democrat, said in a speech to the Senate.

Senate Republicans had resisted voting on the debt ceiling for months, seeking to link the move to President Joe Biden’s proposed $1.75 trillion “Build Back Better” domestic spending bill that Republicans oppose.

Democrats note the legislation is needed to finance substantial debt incurred during former President Donald Trump’s administration, when Republicans willingly increased Washington’s credit card bill by about $7.85 trillion, partly through sweeping tax cuts and spending to fight the COVID-19 pandemic.

Lawmakers agreed last week to legislation that prevents the use of stalling tactics in this case, allowing the Senate to move quickly to approve raising the debt ceiling by a simple majority vote of Democrats in the chamber.

That is the legislation that Schumer is expected to bring to the floor for a vote on Tuesday. The Democratic-led House of Representatives is also expected to vote on it Tuesday, and if it passes both chambers as expected, Biden will sign it into law.

The specific dollar amount for increasing the current $28.9 trillion debt limit has not been disclosed, but it was expected to be in the range of $2 trillion to $3 trillion and is intended to keep Treasury Department borrowing operating normally at least through the November 2022 congressional elections.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.