HomeBusinessBiden Signs Bill Raising US Debt Cap And Prevents Default By Reuters

Biden Signs Bill Raising US Debt Cap And Prevents Default By Reuters


© Reuters. FILE PHOTO: US President Joe Biden hosts a virtual summit on coronavirus disease (COVID-19) as part of the United Nations General Assembly (UNGA) from the White House in Washington, USA. September 22, 2021.REUTERS / Evelyn Hockstein

WASHINGTON (Reuters) – US President Joe Biden signed legislation on Thursday that temporarily raises the government’s borrowing limit to $ 28.9 trillion, pushing the deadline for debt default until December only.

Without the increase in the debt ceiling, the United States Treasury had estimated that it would run out of money to pay the nation’s bills on October 1. 18

The $ 480 billion increase in borrowing limit signed by Biden is expected to be depleted in December. 3.

After weeks of partisan fighting, the Senate approved the short-term solution last week and the House of Representatives approved it on Tuesday.

Senate Republican Leader Mitch McConnell wrote in a letter to Biden after the Senate vote that he would no longer help Democrats raise the debt limit.

McConnell wants Democrats to use a procedural measure known as reconciliation, which would not require Republican votes, to raise borrowing authority. Democrats have rejected that as an option to lift the cap.

Republicans say raising the debt cap is a problem for Democrats because of Biden’s proposed $ 3.5 trillion spending plan to invest in expanded social services and address climate change.

Democrats say they voted to increase the debt ceiling during Republican Donald Trump’s administration even though they opposed deep tax cuts that increased debt.

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