October 26, 2021
Pelosi backs debt ceiling proposal that would allow Treasury to raise limit

Pelosi backs debt ceiling proposal that would allow Treasury to raise limit

Home Speaker Nancy Pelosi indicated Tuesday that she would help a proposal that would get rid of the necessity for Congress to maintain common votes to raise the debt ceiling.

Underneath the proposal launched by Home Finances Committee Chairman John Yarmuth, D-Ky., and Rep. Brendan Boyle, D-Pa., the Treasury Secretary would have authority to raise the debt ceiling at their discretion, whereas Congressional lawmakers would vote provided that they wished to overrule a hike.

“That decision could be overruled by the Congress,” Pelosi informed reporters. “It would take 60 votes under the present custom, but nonetheless, Congress would have to overrule that. That seems to have some appeal to both sides of the aisle because of the consequences to people of not lifting it.”

When requested if she personally supported the plan, Pelosi mentioned she felt it “has merit.”

“Yes, I do think it has merit, but in the meantime, we’re going to pass a bill today to take us to December,” she added.

Pelosi mentioned the concept because the Home ready to vote on a short-term debt ceiling hike geared toward averting a U.S. default following weeks of discord on Capitol Hill. The Senate-approved $480-billion hike would cowl U.S. debt obligations by way of December, granting a break from the controversy till Democrats may enact a longer-term answer.

Senate Republicans allowed the short-term debt ceiling hike final week after blocking a number of earlier Democratic efforts. 

GOP lawmakers are pushing Democrats to enact a longer-term debt ceiling hike with out their assist by way of the funds reconciliation course of. Democrats say utilizing funds reconciliation is a non-starter that would be too sophisticated and current pointless dangers to the U.S. economic system.

Earlier this month, Treasury Secretary Janet Yellen argued the debt ceiling ought to be abolished altogether to forestall the potential for a future default due to political disagreements.

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