House speaker Nancy Pelosi and
Senate majority leader Chuck Schumer have announced that legislation to avert a government shutdown will be paired with a measure to avoid a debt default.
Senate minority leader
Mitch McConnell has vowed that Republicans will not cooperate with Democrats to raise or suspend the debt ceiling. Democrats have argued that the vote should not be a partisan one, as they voted to raise the debt limit by trillions of dollars during Trump’s presidency.
The legislation to avoid a government shutdown will also include a suspension of the debt limit through December 2022 to once again meet our obligations and protect the full faith and credit of the United States,” they said in a joint statement. “We believe a suspension of the debt limit through December 2022 would provide an amount of time commensurate with the debt incurred as a result of passing last winter’s bipartisan $908bn emergency Covid relief legislation, which was authored by Republican senators Cassidy, Romney, Portman, Collins and others, and ultimately voted for by more than 40 Republicans – including Senator McConnell – and signed into law by the previous president.”
The government is set to run out of money at the end of the month. Separately, Treasury secretary Janet Yellen said that the US would likely default on its debt sometime in October if action is not taken. Failure to raise the debt limit would “have absolutely catastrophic economic consequences”, Yellen has warned.
The bill will also include emergency funding requested by the administration to aid states battered by the recent natural disasters as well as funding to help resettle Afghan refugees.
Source : https://www.theguardian.com/us-news/live/2021/sep/20/government-shutdown-democrats-spending-plans-joe-biden-coronavirus-latest-news-us-politics299