This week the House passed a short-term government funding bill, which maintains current federal funding levels through December 3, and includes a suspension of the debt limit through 2022. The legislation was passed on a party-line vote of 220 to 211 and now heads to the Senate.
The government’s funding is set to lapse on September 30, and a failure by Congress to suspend or increase the debt limit will lead to a first-ever U.S. debt default. U.S. Treasury Secretary Janet Yellen urged Congress to raise or suspend the nation’s debt ceiling or risk “widespread economic catastrophe."
Senate approval of the bill appears to face long odds, as Republican senators have said that actions to increase or suspend the debt limit must be taken by Democrats alone. With the clock ticking on the debt ceiling, Congress needs to resolve an impasse over the debt limit to avoid threatening the US economy, as well as the global economy.
