The US government is getting close to the time limit for extending its debt ceiling and thus avoiding operational paralysis, but lawmakers cannot agree.
However, House Democratic leader Nancy Pelosi on Thursday pledged to pass a new budget law before September 30 to prevent the federal government from falling into repayment, but she did not say whether she expected the party’s support. The Republican opposition is political.
To continue operating from October 1, the government needs permission to extend the debt ceiling by the legislature. Time is short because the Treasury estimates that the country will reach its debt limit at the end of October due to the fact that this year has been spent more due to measures implemented to support the economy as a result of the Covid-19 pandemic.
The problem is that political agreement between Democrats and Republicans is necessary. Democrats control both houses of Congress, but despite this, they need some opposition votes to pass the budget bill before the end of this month, which marks the end of the US fiscal year.
The debt ceiling, set at $28.8 trillion, is the amount the government is no longer able to issue new paper to finance itself, preventing it from repaying its debts.
And on Tuesday evening, just by Democratic votes, the House agreed to extend the budget until December 3 so that the work of the federal government (the so-called shutdown) is not paralyzed.
Some Republican lawmakers support this idea, but vehemently oppose raising the US debt ceiling, a move Democrats have slipped into the bill.
Both parties traditionally approve of the debt measures, but this time Republicans are hesitant and accusing Democrats of incurring “irresponsible” spending.
Nancy Pelosi estimates that before September 30 an expansion of the debt ceiling will be approved to avoid government paralysis.
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