On Tuesday, Democratic-led US House of Representatives had voted 219-206 to tentatively pass a legislation what in effect would raise the borrowing authority for US Treasury Department, eventually breaking through a final hurdle in a bid to avert a tempestuous US credit default by October 19.
In point of fact, a party-lined voting proceeding with ‘Yes’ from every Democrat and ‘No’ from every Republican had passed a hard-fought legislation on Tuesday to momentarily raise the US Treasury’s borrowing capacity by $460 billion to $28.9 trillion, extending the deadline day for a cataclysmic US credit default until December as the Biden Administration has been set to run out of fresh liquidities by October 19 as beforemtioned which in effect could have had long-running repercussions.
However, latest US House of Representative decision to pass a legislation that would raise the US Treasury’s debt-ceiling capacity until end-2021, came forth days after US Senate had voted to pass the bill in upper house in a bipartisan effort following weeks-long debates.
Nevertheless, the US President Joe Biden is expected to sign off the legislation into a law by October 18 as US Treasury’s Yellen would no longer be able to pay off US credits without congressional actions after October 19.
US House of Representatives vote to raise Treasury’s debt-ceiling authority
Nonetheless, Republican leaders had stressed following the voting process that the ‘Democrats and Democrats alone’ would take the sole responsibility of the decision claiming the party might spend an additional trillion of dollars to branch out social programs and tackle climate changes, which Republicans often deemed unnecessary.
Meanwhile, raising an alarming bell over a potential credit default as early as by December this year, US Democratic Representative Richard Neal, Chair of the House Ways and Means Committee, said in a statement, “We have temporarily averted crisis ahead of next week’s deadline, but come December, members of Congress will need to choose to put country before party and prevent default”.