(LibertySociety.com) – Amid ongoing debacles in Congress regarding the upcoming fiscal year’s budget, the House passed legislation on September 30 to keep the government funded and running through December 3.
Although a potential government shutdown has been temporarily avoided, the debt ceiling, or the cap on the amount of money the US government can borrow to pay debts, is still up for discussion within a congressional deadlock.
Shutdown averted. With only hours to spare, House Speaker Nancy Pelosi signed legislation that will keep the government funded through December 3rd. pic.twitter.com/btp985dW6U
— USA TODAY (@USATODAY) October 1, 2021
The House of Representatives passed a bill on September 29 to suspend the debt limit through December 2022, but the measure does not appear to have enough support in the Senate to successfully pass.
Similar to a credit limit on your credit card, there is a maximum on how many bonds the government can issue to bring in capital. Without raising the debt ceiling (limit), the US would not make its interest payments, putting it into default and affecting the national economy.
That gives legislators some time to figure out how to address the problem and avoid US default. The problem is neither party wants the responsibility of trying to raise the debt ceiling level at the risk of losing votes with 2022 elections right around the corner.
Unfortunately, unless they reach a bipartisan agreement on the matter, the federal government risks a shutdown which would hurt the very people officials are elected to serve and represent — the American citizens.
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