The Senate votes in favor of raising the debt ceiling until December | Univision Politics News

The final vote was 50 in favor and 48 against. Now the House of Representatives will have to approve it and then it will be sent to President Joe Biden for his signature.

Hours earlier, Senate Majority Leader Chuck Schumer announced that they would accept the proposal that Republican Minority Leader Mitch McConnell had offered on Wednesday.

“We have reached an agreement,” said Schumer at the beginning of the session. “We hope to finish it today.”

In their agreement, the Democratic and Republican leaders they walked away from a dangerous confrontation over raising the debt limit.

McConnell had offered on Wednesday to accept a short-term extension. as Republicans prepared to block the measure to suspend the borrowing limit through December 2022, as President Joe Biden and business leaders expressed fears that an unprecedented federal default could disrupt payments from the government to millions of people and plunge the country into recession.

Senate leaders worked late into the night to finalize the details. “The Senate is moving forward,” McConnell said Thursday.

The news sent Wall Street soaring on Thursday morning. . The S&P 500 was up 1.3% and the Nasdaq 1.6%.

In December there will be a sequel in a way, when Congress will again face the pressing deadlines to finance the government and raise the debt limit before the end of the year recess.

The agreement will allow raising the debt limit at about $ 480 billionsaid a Senate aide who is aware of the negotiations and who spoke on condition of anonymity. It is the level necessary, according to the Treasury Department, to reach December 3.

“I am pleased that Mitch McConnell finally saw the light,” said Independent Senator Bernie Sanders. Republicans “have finally done the right thing and at least we have a couple of months to come up with a
permanent solution”.

Assuming the details of the emergency law have been finalized, “for the next three months we will continue to make it clear that we are willing to approve the payment of our bills and the Republicans are not,” declared Democratic Senator Chris Murphy.

To no one’s surprise, McConnell saw it very differently.

“This will challenge Democratic pretexts about time constraints created by them and give the unified Democratic government plenty of time to pass laws on its own,” he said.

The October 18 is the deadline in which, according to the Treasury Department, the government would run out of funds to respond to the already huge public debt.

A challenge for the coming months

Republicans have been warning since June that they will not vote for a permanent solution and have repeatedly asked Democrats to use a mechanism called “reconciliation” to approve the debt ceiling hike alone.

Democrats refuse to use that maneuver because it can only be used once per fiscal year, and they plan to use it to pass much of US President Joe Biden’s economic agenda.

The deal sparked a tepid response from the White House, which had been insisting for days that the longer-term debt ceiling needed to be suspended and will now have to settle for a temporary solution.

“This is a positive step forward, and it gives us room to breathe and avoid catastrophic default we were approaching because of Senator McConnell’s decision to play politics with our economy, “Deputy White House spokeswoman Karine Jean-Pierre said at a press conference following the announcement.

However, the spokeswoman stressed that the country “should never have reached the brink of default” and blamed Republicans for not agreeing to pass a more durable measure.

The deal, however, shouldn’t have to be detrimental to Democrats, who will have to figure out how to play their cards in the coming weeks.

From the beginning, the Democrats wanted the debt ceiling to be suspended until December 2022 so that they would not have to debate on that issue during the campaign for the legislative elections of November of next year, in which they could lose the narrow majorities they hold in both houses of Congress.

They can still dodge the debt issue if they can bring order to their ranks for the next two months. Specifically, its major The challenge is to agree between the centrist and progressive wings of the party to see what is included in the legislative package on social spending, which they want to pass without Republican votes.

If they come to an agreement on that issue, they could put the debt ceiling in that package with Biden’s agenda and forget about it until after the election.

In the last days, Biden has increased the pressure on his party to reach an agreement on their economic agenda.

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