House of Representatives votes to raise debt limit

Capitol Washington

The Senate will likely vote against the plan.

(Photo: dpa)

Washington The US House of Representatives has approved a bill raising the debt limit. With a narrow majority of two votes, the Republican-dominated House of Representatives passed the proposal of its chairman, Kevin McCarthy, on Wednesday evening (local time). The draft provides for a $1.5 trillion increase in the debt limit, but only if there are also significant cuts in government spending. The bill now goes to the Democrat-led Senate, where it is given no chance. President Joe Biden has also announced that he may want to veto it.

Observers see the passage of the proposal as a tactical move by Republicans to force Biden to the negotiating table. McCarthy wants to get Biden to agree to cuts in certain government spending that Republicans disagree with.

These are essential parts of Biden’s political agenda, such as investments in climate protection. McCarthy’s leverage is an imminent default by the US government. This would happen if the debt ceiling is not raised before the government runs out of money. It could happen between July and September, according to the Independent Budget Office of the US Congress. In this case, economic experts predict serious consequences for the US and global economy.

“Now it’s up to you,” McCarthy said directly to Biden after the vote. The President could no longer endanger the US economy, said the Republican. In the past few weeks, the White House has repeatedly said that Biden is ready to negotiate a draft budget. However, contrary to what is envisaged in the draft law that has now been passed, these talks should not be linked to raising the debt ceiling. Republicans in Congress must act immediately and without strings attached to prevent a default, White House spokeswoman Karine Jean-Pierre said in a statement after the vote.

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