Video: U.S. Senate on Dec. 14, 2021 approved a measure to lift the nation's borrowing limit by 2.5 trillion U.S. dollars, just one day before the deadline set by Treasury Secretary Janet Yellen for lawmakers to take action to prevent a default. (Xinhua)
The debt limit, commonly called the debt ceiling, is the total amount of money that the U.S. government is authorized to borrow to meet its existing legal obligations, including social security and medicare benefits, interest on the national debt, and other payments.
WASHINGTON, Dec. 15 (Xinhua) -- The U.S. House of Representatives on Wednesday morning gave a final approval to the measure that would lift the nation's borrowing limit by 2.5 trillion U.S. dollars, averting a looming debt default.
The Democrats-held House approved the measure by a 221-209 vote to raise the federal government's debt limit to roughly 31 trillion dollars, hours after the Senate passed the legislation in a party-line 50-49 vote on Tuesday.
The legislation now heads to President Joe Biden, who is expected to sign it quickly to ensure the nation doesn't default on its debts.
"The legislation will raise the debt limit to a level commensurate with funding necessary to get into 2023," Senate Democratic leader Chuck Schumer said on Tuesday.
"This is about paying debt accumulated by both parties, Democrats and Republicans. So, I'm pleased both parties came together to facilitate a process that is made addressing the debt possible," Schumer said.
The vote came after Schumer and Senate Republican leader Mitch McConnell last week struck a deal to allow Democrats to raise the debt limit through simple-majority votes in the 100-member Senate, rather than the 60-vote filibuster threshold.
U.S. Senate Majority Leader Chuck Schumer speaks during a press conference on Capitol Hill in Washington, D.C. Dec. 14, 2021. (Photo by Ting Shen/Xinhua)
Republicans previously refused to support Democrats' efforts to raise the debt ceiling, arguing that Democrats should deal with the crisis on their own, since they control both chambers of Congress and the White House, while complaining about Democrats' lack of bipartisanship in crafting major spending bills.
Democrats, however, noted that raising the debt limit does not authorize new federal spending, but only allows the Department of the Treasury to borrow additional funds to cover expenditures that have already been approved by Congress, including COVID-19 relief bills and the tax cuts rolled out during the administration of former President Donald Trump.
U.S. Treasury Secretary Janet Yellen has urged Congress to raise the debt limit by Wednesday to avoid a potential default. "I cannot overstate how critical it is that Congress address this issue. America must pay its bills on time and in full. If we do not, we will eviscerate our current recovery," Yellen said recently before the Senate Banking Committee.
The Bipartisan Policy Center, a Washington, D.C.-based think tank, estimated earlier this month that the federal government could be unable to pay its bills as soon as Dec. 21 if Congress fails to raise the debt limit.
Failure to pay the nation's bills on time could send immediate ripple effects throughout the global economy, particularly during a time of economic recovery and heightened uncertainty over a new COVID-19 variant, the think tank warned.
The debt limit, commonly called the debt ceiling, is the total amount of money that the U.S. government is authorized to borrow to meet its existing legal obligations, including social security and medicare benefits, interest on the national debt, and other payments. ■
