The US House has approved a bill to speed up debt growth

By Richard Cowan and Susan Cornwell

WASHINGTON (Reuters) – The U.S. House of Representatives passed a measure Tuesday night to urge Congress to speed up legislation to raise the federal government’s debt limit and prevent an unprecedented failure.

The Senate is expected to adopt a measure on Thursday that would prevent the use of stop tactics.

This would pave the way for Congress to review separate legislation to raise the current $ 28.9 trillion limit on the current loan authority to a level yet to be determined.

The House voted 222-212 in favor of a measure designed to speed up the often-increasing debt limit in the Senate. He was backed by a single Republican.

“Raising the debt ceiling will prevent us from paying off the debt we already owe. It’s about pre-approved investments in Congress,” Democratic Rep. Steven Horsford said in a House debate.

Earlier, House Speaker Nancy Pelosi warned that Congress would have serious consequences without swift action.

“We need to face the debt limit to avoid a unnecessary and catastrophic fall in the $ 1 trillion of GDP and prevent a devastating decline in our credit rating,” Democrat Pelosi said in a statement.

But Republicans in the House argued against any action, knowing that Democrats wanted to take the burden on themselves under a privately negotiated deal between the two parties.

“Make no mistake about it. This debt ceiling is being raised to pay billions of Socialist spending,” said Republican Rep. Kevin Brady.

In part, he was talking about President Joe Biden’s $ 1.75 trillion “Build Better” internal investment bill that Democrats are expected to pass in the Senate this month.

Democrats say an increase in borrowing authority is largely necessary to cover the cost of tax cuts and spending programs in the administration of former Republican President Donald Trump, which was approved by Republicans in Congress.

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Typically, many bills require the support of at least 60 senators to clear procedural hurdles. Republican Senate Leader Mitch McConnell sent a clear message that his party will help ease the debt limit, even if its members aim to vote against the bill that establishes it.

“This is for the good of the country by avoiding the default,” McConnell told reporters, adding, “We will vote on Thursday,” he said, adding that he was confident in his approval.

Congress will end Dec. 15 with long-running clashes between Democrats and Republicans over the date Secretary of the Treasury Janet Yellen called for to calm financial markets and ensure there is no priority – an event that could have catastrophic economic consequences.

An increase in the debt limit, if exceeded, is expected to give the Treasury sufficient borrowing authority in next November’s congressional elections.

Tuesday’s progress strategy, aimed at Democratic and Republican leaders in Congress after months of political struggles, would set a two-step approach to increasing the Treasury’s borrowing authority.

If the Senate approves the bill passed by the House, a second measure to raise the debt limit in the fast-track procedure would be debated in the Senate for up to 10 hours instead of an open debate that could delay or kill many bills. chamber.

A simple majority in the Senate would approve the way to the final vote in the House. Both chambers are tightly controlled by Democrats.

The accelerated debt limitation procedure was included in a bill to delay the cuts to the Medicare health care program, which would take effect from January 1.

By making it easier to increase the debt limit, but actually voting to implement it, Republicans would be given ammunition to attack Democrats in the 2022 congressional election campaign for raising the $ 28.9 trillion debt limit.