Should the Debt Limit Be Increased by $2.5 Trillion to $31 Trillion? (S. Joint Res. 33)

What is S. Joint Res. 33?

(Updated March 20, 2022)

This bill was enacted on December 16, 2021

This joint resolution would raise the debt limit by $2.5 trillion to $31 trillion to ensure the federal government can fund its obligations beyond December 15, 2021, which is when the Treasury Dept. has indicated it will have less certainty about cash balances available to pay debt-related expenses. It’s unclear precisely how long this debt limit increase would be sufficient to fund the federal government’s obligations, in part because that’s dependent on the amount of spending enacted by Congress, but lawmakers have suggested it will likely last until 2023. This legislation will be exempt from the Senate’s filibuster because lawmakers enacted a one-time filibuster carve-out for debt limit legislation, thus allowing it to pass the upper chamber on a simple majority vote.

Argument in favor

The federal government defaulting on its obligations would be catastrophic, so the debt limit must be increased. Raising the debt limit by $2.5 trillion will likely be enough to cover federal spending into 2023, allowing existing federal discretionary and mandatory spending to go ahead along with Democrats’ Build Back Better Act.

Argument opposed

Raising the U.S. debt limit by $2.5 trillion to $31 trillion will only encourage the narrow Democratic majorities in Congress to push forward with more reckless spending. The debt limit increase shouldn’t be any larger than necessary until the federal government starts to live within its means.

Impact

The national debt.

Cost of S. Joint Res. 33

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Senate Majority Leader Chuck Schumer (D-NY) offered floor remarks on this bill to raise the debt limit by $2.5 trillion on the Senate floor ahead of a vote:=

“As I have said repeatedly, this is about paying debt accumulated by both parties, so I am pleased Republicans and Democrats came together to facilitate a process that has made addressing the debt ceiling possible. I want to thank the Republican Leader and all my Republican colleagues who reached out across the aisle in good faith to bring us to this point. No brinksmanship, no default on the debt, no risk of another recession: responsible governing has won on this exceedingly important issue. The American people can breathe easy and rest assured there will not be a default.”

Senate Minority Leader Mitch McConnell (R-KY) offered remarks on the Senate floor in opposition to this bill ahead of the vote:

“Washington Democrats’ printing, borrowing, and spending addiction is directly hurting American families. Two-thirds of the American people — a supermajority — are worried about inflation… Later today, every Senate Democrat is going to vote on party-lines to raise our nation’s debt limit by trillions of dollars. If they jam through another reckless taxing and spending spree, this massive debt increase will just be the beginning. More printing and borrowing. To set up more reckless spending. To cause more inflation. To hurt working families even more. The American people need a break.”

Media:

• Senate Majority Leader Chuck Schumer (D-NY) Remarks

• Senate Minority Leader Mitch McConnell (R-KY) Remarks