Senate Democrats will vote later Tuesday to lift the nation’s debt ceiling by $2.5 trillion, which should provide federal borrowing authority “into 2023,” well beyond the midterm elections.
Majority Leader Chuck Schumer, a New York Democrat, praised the deal, which came after weeks of partisan wrangling. A vote is expected on Tuesday.
Legislative aides confirmed the new borrowing level to the Washington Examiner.
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“No brinkmanship, no default on the debt, no risk of another recession,” Schumer announced. “Responsible governing has won on this exceedingly important issue. The American people can breathe easy, and rest assured there will not be a default.”
Treasury Secretary Janet Yellen warned Congress the federal government would risk defaulting on its loans by Dec. 15 unless the borrowing was raised.
The Senate vote will require only a simple majority of all Democrats to advance and pass it, thanks to a deal cut with Republicans.
Republicans refused to vote for a long-term increase in the borrowing limit, citing rampant spending by Democrats that is adding to the nation’s debt, which now stands at more than $27 trillion.
Minority Leader Mitch McConnell, a Kentucky Republican, nonetheless cut a deal last week to facilitate a quick passage with only Democratic votes, prompting backlash from conservatives.
Democrats have passed trillions in new spending since taking control of Congress and the White House and are aiming to pass a $1.85 trillion social welfare and green energy bill by Christmas.
Schumer said the debt was accumulated by both parties, and lifting the borrowing limit should be bipartisan.
While 14 Republicans voted on a procedural measure to facilitate Tuesday’s passage, GOP lawmakers in the House and the Senate are expected to vote against final passage.
McConnell, in a floor speech Tuesday, blasted Democrats over their agenda, arguing it is contributing to skyrocketing inflation, which rose to 6.8% in November.
“Later today, every Senate Democrat is going to vote on party lines to raise our nation’s debt limit by trillions of dollars,” McConnell said.
“If they jam through another reckless taxing and spending spree, this massive debt increase will just be the beginning. More printing and borrowing. To set up more reckless spending. To cause more inflation. To hurt working families even more. The American people need a break.”
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The House will take up the bill either Tuesday or Wednesday after the Senate passes it.