Senate poised to raise debt limit by $2.5T, avoiding default
ABC News
Congress is moving to lift the nation’s debt limit by $2.5 trillion
WASHINGTON -- The Senate was poised Tuesday to lift the nation's debt limit by $2.5 trillion under a deal struck between party leaders, defusing a volatile issue until after next year's midterm elections while saddling majority Democrats with a tough vote.
The vote would come just one day before a deadline set by Treasury Secretary Janet Yellen, who warned last month that she was running out of maneuvering room to avoid the nation’s first-ever default. The bill is expected to clear the Senate on a party-line vote that garners no Republican support, with House passage anticipated as early as Tuesday night, which would send the measure to President Joe Biden’s desk.
“This is about paying debt accumulated by both parties, so I’m pleased Republicans and Democrats came together,” Senate Majority Leader Chuck Schumer, D-N.Y., said Tuesday of the agreement, which will allow Democrats to avoid the threat of a Republican filibuster.
Despite a seemingly straightforward name, the nation's debt limit does little to curtail future debt. Established in 1917, it instead serves as a brake on spending decisions already approved by Congress and the White House — some decades ago — that if left unpaid could cripple markets, send the economy into a tailspin and shake global confidence in the U.S.
