WASHINGTON (AP) – Democrats and Republicans on Thursday agreed to raise the U.S. government’s debt ceiling by December.
“We have reached an agreement,” Schumer said at the beginning of the session. “We hope to finish it today.”
Republican minority leader Mitch McConnell on Wednesday offered to accept a short-term extension just before the Republicans were ready to block the move to cut the credit limit until December 2022.
President Joe Biden and business leaders feared an unprecedented federal failure could disrupt government payments to millions of people and plunge the country into recession.
In December, there will be a continuation in a way, when Congress will again face a pressing deadline to finance the government and raise the debt ceiling by the end of the year.
“I’m glad Mitch McConnell finally saw the light,” said Independent Senator Bernie Sanders. Republicans “have finally done the right thing, and must come up with a permanent solution for at least two months.”
Democrat Sen. Chris Murphy announced that the details of the emergency law have been finalized and that “for the next three months we will continue to make it clear that we are ready to approve the payment of our bills, not Republicans.”
To no one’s surprise, McConnell looked at it very differently.
“This will challenge the democratic pretexts about the time constraints they have created and give a lot of time for a unified democratic government to pass laws,” he said.
October 18 is the deadline, and according to the Treasury Department, the government will run out of funds to respond to the already large public debt.