Treasury extends debt ceiling deadline to December 15
Democrats gifted 12 days for Christmas: Treasury announces government could run out of money on December 15 – not December 3 – giving Congress more time to extend the debt ceiling long term
- Treasury Secretary Janet Yellen gifted Congressional Democrats 12 additional days in December to pass legislation to lift the debt ceiling
- The original deadline was December 3
- Yellen told House Speaker Nancy Pelosi that she was able to ‘further improve that projection’ believing the new date would be December 15
- After that, the Treasury Department would be left with ‘insufficient remaining resources,’ Yellen said
- The new date gives the Democratic majority more time to pass President Joe Biden’s $1.75 trillion Build Back Better and work on a debt ceiling bill
- In October, the Senate voted to temporarily raise the debt limit by $480 billion after hatching a deal with Senate Minority Leader Mitch McConnell
By Nikki Schwab, Senior U.S. Political Reporter For Dailymail.com
Published: 18:31 EST, 16 November 2021 Updated: 20:50 EST, 16 November 2021
Treasury Secretary Janet Yellen told congressional leaders Tuesday that the federal government has more time than her initial calculate on when it would fault on its debt.
Yellen said in a letter that she has ‘a high degree of confidence’ in Treasury’s ability to pay the country’s debt until around December 15 – approximately two weeks longer than her initial projection of Dec. 3.
Her gift of 12 additional days came as Democrats facing a grind of holiday deadlines, including passing President Joe Biden’s $1.85 trillion package of social safety net programs and funding the federal government, which runs out on December 3.
In a letter to House Speaker Nancy Pelosi, Yellen noted how she originally believed the government would be able to pay its bills by December 3, but was able to ‘further improve that projection,’ believing the new date would be December 15.
After that, the Treasury Department would be left with ‘insufficient remaining resources,’ Yellen said.
Republicans have vowed not to help Democrats raise the limit. The country has never defaulted on its debt and to do so could cause a global-wide financial crisis.
‘As the federal government’s cash flow is unprotected to unavoidable tendency to change, I will continue to update Congress as more information becomes obtainable,’ she wrote.
Treasury Secretary Janet Yellen gifted Congressional Democrats 12 additional days in December to pass legislation to lift the debt ceiling
In a letter to House Speaker Nancy Pelosi (pictured), Yellen noted how she originally believed the government would be able to pay its bills by December 3, but was able to ‘further improve that projection,’ believing the new date would be December 15
‘To ensure the complete faith and credit of the United States, it is basic that Congress raise or suspend the debt ceiling as soon as possible,’ Yellen insisted.
Treasury will also be able to make a $118 billion move to the Highway Trust Fund on that date, which is required.
The new date gives Democrats more time to pass President Joe Biden’s $1.75 trillion Build Back Better using the reconciliation course of action in the Senate – to bypass a Republican filibuster, and also work on a bill to raise or suspend the debt ceiling.
On Tuesday, Senate Majority Leader Chuck Schumer said he hoped to pass the Build Back Better social spending bill before Christmas.
‘That’s a huge agenda for December and the end of November, but we aim to get it all done,’ Schumer said.
In October, the Senate voted to temporarily raise the debt limit by $480 billion.
Congress also passed a stopgap spending bill that is set to nevertheless expire on December 3, which if missed could cause a government shutdown.
Senate Minority Leader Mitch McConnell used the debt ceiling to try to derail the Build Back Better reconciliation bill.
McConnell wanted Senate Democrats to pass a debt ceiling hike alone – using the time of action of reconciliation to bypass the filibuster and get a bill by.
‘That’s a huge agenda for December and the end of November, but we aim to get it all done,’ Senate Majority Leader Chuck Schumer said Tuesday, as the Democrats hope to pass President Joe Biden’s Build Back Better bill and raise the debt ceiling
Biden and other top Democrats wanted Republicans to simply not filibuster a Senate debt bill, allowing them to pass it using regular order.
They complained that reconciliation would take too long, and threaten the U.S. economy.
The House had before passed a bill that would suspend the debt ceiling until December 2022, after next year’s midterm elections.
Republicans, however, wanted a bill that would include a specific dollar amount – likely as a way they can nail Democrats on increasing the debt in improvement of the midterm elections.
Eleven Senate Republicans voted alongside every Democrat to break the GOP’s filibuster.
The bill was then passed 50 to 48, with every Democrat voting in the affirmative and every Republican against it.
proportion or comment on this article:
Click: See details