Civic Register
| 10.12.21

House Passes Bill to Raise U.S. Borrowing Limit, Debt Dispute Delayed Until December

How do you feel about the short-term debt limit extension?

What’s the story?

  • The House of Representatives on Tuesday passed a bill to raise the national debt limit by $480 billion through at least December 3rd. While the vote means lawmakers averted a potential first-ever default on the federal government’s obligations from occurring on October 18th, Congress will have to address the issue again in a few short months.
  • House Democrats “deemed” the debt limit extension bill passed when they voted 219-206 on party-lines to adopt a resolution that also structures floor debate around a pair of unrelated bills that are expected to be considered next week. Using a deeming resolution allows lawmakers to avoid voting directly on individual issues included within it. 
  • The bill passed the Senate last week on a 50-48 party-line vote after 11 Republicans crossed the aisle to join Democrats in voting to end the filibuster on the bill. While GOP senators relented in their insistence that Democrats raise the debt limit on their own to allow the short-term debt limit hike to advance, they’ve signaled they won’t be as accommodating next time and have urged Democrats to raise the debt limit on their own through reconciliation.

What’s next for the debt limit?

  • Congress chose to raise the debt limit through December 3rd in part because that date aligns with the expiration of the latest stopgap funding measure, meaning that lawmakers will need to approve appropriations for federal agencies by then or there will be a partial government shutdown. 
  • However, that double deadline could prove to be primarily symbolic if the Treasury Dept. is able to use “extraordinary measures” to extend the debt limit deadline, potentially into January or February 2022. Once the Treasury has determined the “x-date” at which extraordinary measures will be exhausted and the federal government will be unable to fulfill its financial obligations, Congress will know its true deadline for raising the debt limit.
  • In the meantime, Democrats will continue their intra-party negotiations over the cost and scope of their “Build Back Better” reconciliation bill. If Democrats are able to pass that legislation through Congress on party-lines in addition to reaching a bipartisan deal on fiscal year 2022 appropriations by the time the true debt limit deadline, they will have a better estimate of upcoming deficits to use in raising the debt limit.
  • Regardless of any progress they make on the partisan Build Back Better bill and bipartisan appropriations, Democratic majorities in the House and Senate will need to decide how they will raise the debt limit before the next deadline approaches. Absent that Republican support, Democrats will need to use budget reconciliation to raise the debt limit.
  • The Senate parliamentarian has clarified that Democrats can use reconciliation for both their spending bill and the debt limit and that each can be considered independently in Congress without interfering with the other. To do so, Democrats would need to pass a resolution through both chambers to revise their budget resolution to allow them to raise the debt limit in either a standalone bill or as part of the Build Back Better package. 
  • A Senate “vote-a-rama” on debt-related amendments would occur when the chamber considers the revised budget resolution, giving GOP senators a chance to force painful votes. The Senate would also hold a vote-a-rama when considering the Build Back Better spending bill or legislation raising the debt limit.
  • Aside from potential vote-a-rama drama, Democrats would prefer to avoid using reconciliation to raise the debt limit because they would likely have to specify an exact number for raising the debt limit, as opposed to suspending the debt limit through a future date and allowing unlimited borrowing until then. The Senate parliamentarian reportedly hasn’t provided guidance yet on whether the debt limit could be suspended using reconciliation.


— Eric Revell

(Photo Credit: iStock.com / dinadesign)

  • 165
    Dan
    10/20/2021

    We still take in enough revenue without increasing the debt limit

  • 40
    johnow
    10/19/2021

    Shut the Government down.. Start over with what is necessary, Military, combine them, do away w all redundancy, why do we have fighter aircraft in the Navy and Air Force, train All pilots to land on land and ship. Do away with 1/2 of the General Officers as a start. Make each bill has to be voted on and pass by itself, no pork fat.. Cut half of the government civil service jobs, and all contractors. Send NO money or aid to any group or Country, till all our people are taken care of in the US. Build our manufacturing backup in the US..We send Nothing out of the US,and we buy Nothing from anywhere else, do away with global economy in the US..Put all of our military on the borders, and collecting All people in the US illegally, send them just across the border and release them in Mexico, and advise them if they come back illegally, we will shoot them, and do just that..Federal Government cuts All funding to the States, until Feds balance the funds they have. Go back on the Gold/Silver Standard.. No Welfare, you will do something for your money..Roosevelt had it correct w the New Deal,you work a day to receive a days pay.

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    Today at 11:44 AM
  • 695
    Lynne
    10/17/2021

    Better than a default now, but then what?

  • 159
    Ray
    10/15/2021

    Raising the limit is an ordinary no brainer work that Republican are trying to make it to a political football in hope of getting us to think something is hugely wrong and that they are the ones who is fixing it. They have no shame playing with our future, democracy, economy, etc.

  • 66
    Da3m0n
    10/15/2021

    do your jobs you bums and make sure we pay our bills, this is to expected from cruz but not the others its laughable we are hurting our credit score for your political whims on a man who lost the presidency and will do so again in 2024 if trump loses then it will cause a crumbling of the republican party correct your error modernize and reevaluate the situation if not then be prepared to lose texas seats and more importantly the trust of republicans across the country

  • 1,714
    Lesley
    10/15/2021

    Stop letting terrorists have any say at all. That have proven for decades that the don’t negotiate in good faith. Only screw everything up. We voted for Joe’s agenda. Let’s have it.

  • 1,271
    justiceforamerica
    10/15/2021

    China - your bosses... Are building and exploring for coal, gas etc.. But they sell the dolts (you) wind turbines and solar panels.. The Taliban tells you to buzz off Where are our Americans you left there for horrible torture and worse People are running for offices in record numbers.. Fact are abundant- prosecutions will be the only thing the American people accept for those who have pushed the narrative etc.. But your winning eh!

  • 36
    Chat
    10/15/2021

    USA debt is now exceeding annual GDP!!!! Ever heard of Greece or inflation or worse yet hyper-inflation? We should have never left the gold standard! And NO to IRS spying!

  • 41.9k
    jimK
    10/13/2021

    When any entity, a person, a city, or a nation, borrows money there is an implicit promise made that the debt incurred will be paid back. PERIOD. … … … The debt ceiling is a useless artifact from the distant past, a political stunt to justify future expenses for our country’s entry into World War One. It has always been a non-partisan formality to just past the debt ceiling whenever it was needed. It was easier for Congress to do this than it was to have it become a political football that could be politically exploited by politicians appealing to the lack of understanding of the electorate at-large. I do not believe that this archaic useless law was ever before used by a minority political party as a means to hold hostage and disrupt the agenda of the majority. … … … This kind of leverage has never before been exerted by a minority political party interested in our country’s future. Unfortunately, when a political party becomes a political faction willing to burn the house down in order to force their agenda by weaponizing this political artifact of a debt ceiling as a way means to obstruct their opponents, we are in great trouble. … … … So we gained a few weeks for a couple of Democratic Senators to get their heads out of their butts and get at least some of the most supported portions of the Build Back Better initiative (and those with the most immediate impact) into the reconciliation package. The parts left out to meet some asinine artificial cap should provide a strong incentive for Democratic voters in 2022 and 2024. The debt ceiling should simply be eliminated as part of the reconciliation package. … … … Biden’s principles and ideals led most of us to vote for him. I think that the overall initiatives that he has proposed are a masterwork of complementary programs that almost fully address those factors which are holding our country back and preparing us fully for evolving future challenges. I think that the administration needs to put more effort into explaining these initiatives to the electorate at large and how each piece-part will affect each of us and how it will be paid for. For example, people just see $3.5 Trillion without realizing that this is a ten year commitment of $350 Billion per year as a direct investment into our economy which will pay for itself many times over in the long term. … … … Compare that to the wealthy tax cuts enacted by the Republican Faction reconciliation process which removes around $700 Billion from the tax base per year and has done absolutely nothing more than line the pockets of the wealthiest either directly or through corporate stock buybacks - and has not contributed in any way to the economy, economic growth or to preparing our country for the future. So now the Republican Faction which just gives away $700B in tax revenues per year is upset by an annual investment in our country’s future which costs half of their entitlements for the wealthy and could easily be paid for up front by simply removing half of the wealthy tax cut entitlements. … … … As the clock is ticking on this pivotal legislation, I think that Biden needs to force the key Democratic stakeholders into a locked room until they can agree to a package that at least delivers the Build Back Better initiatives that can make the quickest positive impact. If he needs to be the demanding teacher willing to use a ruler to whack a few knuckles to get this done, so be it. … … … I am really getting tired of politicians, including our obstinate Democratic Senators being so much more focused on the desires of the ‘me’ and losing sight of their jobs to focus on the needs of the ‘we’.

  • 159
    Michael J
    10/14/2021

    The short-term kicking the can down the road Budget Deficit is typical DC nonsense. Democrats and the GOP/Trump Party are to blame. The only difference is the GOP gives Middle Class American’s tax money to Wealthy Corporations and Individuals whir the Dems give it back to the people who most need it. The GOP Texas Three Stooges will F-up like they usually do. Raphael still has wet dreams of being president 🤡😂🤣

  • 285
    Julia
    10/14/2021

    I trust Democrats.

  • 7,931
    larubia
    10/13/2021

    Thank you for not letting our economy crash. Now we need a long-term solution to this problem!

  • 674
    Azrael
    10/13/2021

    Issue the damned coin or eliminate the limit Make a major decision This is bullshit every few months

  • 138
    A David
    10/13/2021

    Pissed at the GOP wants to default on the money they've borrowed over the last twenty years.

  • 463
    Eric
    10/13/2021

    Great for the time being... but what happens in December? Do we do this all over again? And McConnell has already said that Republicans won't support raising it again. So, what? We tank the US economy? the world's economy? And for what? Just because Republicans don't want to pay for debt THEY incurred? Just to make Democrats look bad? How PETTY! Republicans need to step-up and take responsibility for the debt THEY incurred, or admit that all their after is power, and are NOT interested in actually governing this nation for the GOOD of the PEOPLE! If they're not interested in governing for the people, then they should ALL resign!

  • 2,937
    Arlys
    10/13/2021

    This is just more game playing by those wanting control for themselves. Congress needs to be reminded that their position is considered "public service" and they have no business allowing tax breaks to the wealthiest entities then turning around and denying the less fortunate any type of help for "holding down the fort" while the privileged get away without paying their fare share. New blood with common sense is badly needed within our government. As I said before their job is considered "PUBLIC SERVICE" not a career upon which to bleed the nation dry, make their own "mega bucks", and hand over power to those who demand control over all that is. They will not approve term limits BUT "we the people" can most certainly enforce them with our vote. Think about it for a few minutes.

  • 7,931
    larubia
    10/13/2021

    @Stickyfingers “Spend, spend, spend.” That title goes to tRump! “The national debt has risen by almost $7.8 trillion during Trump’s time in office. “ $2.3 trillion to give tax cuts to the wealthy! The “spending” the Dems want to do is for infrastructure…to make life better for ALL of us! It’s an investment in the USA which will be paid for by reversing those tax cuts & making the wealthy & corporations pay their fair share. I wish people would start voting for their best interests! It amazes me how anyone who is not ultra wealthy votes Republican??? That’s some bamboozling! https://www.propublica.org/article/national-debt-trump https://www.politico.com/story/2018/02/28/tax-cuts-trump-gop-analysis-430781

  • 290
    Linda
    10/13/2021

    The extension was the only thing that could be done because of Republican's obstruction. This will give Democrats more time. They need to do away with the debt limit. America has to pay our bills. And don't forget most of this debt was done by Trump & Republicans. We are paying the bills that the Trump & Republicans caused with their tax break for the wealthy & corporations.

  • 2,427
    Glowurm
    10/13/2021

    Good one, Martha! 👍🏻👏🏻❤️

  • 3,405
    Adel
    10/13/2021

    Just make sure that you pay it off when you agreed to. Why don't you seize some of trump's properties and sell them and use that money to work on paying down the debt. Most of that debt that you keep talking about is his and Mitch's rich buddies. Let them pay it down. Us little people are sick of it!