Lawmakers on Capitol Hill were unable to come to an agreement on the debt ceiling. However, they reached a deal yesterday to raise the federal debt ceiling through early December.
Democratic Senate Majority Leader Chuck Schumer announced a bargain with Republicans to raise the borrowing limit before the money runs out.
“We have reached agreement to extend the debt ceiling through early December, and it’s our hope that we can get this done as soon as today,” stated Schumer.
The deal will allow Republicans to vote on the measure, but it only lasts a short time. Some lawmakers, including Secretary Janet Yellen, are saying that a solution is critical. Yellen warns a debt ceiling breach could trigger a recession, job loss, stoppage of payments to workers, losing out on tax refunds and more.
“Default will call into question, the full faith and credit of the United States,” stated Yellen. “Our country would likely face a financial crisis.”
Democrats are still negotiating a plan based on President Biden’s domestic agenda.
“It’s not good enough to be vague,” said Democratic Vermont Senator Bernie Sanders. “You want to cut childcare? How much do you want to cut childcare? You want to cut climate? Go cut climate. How much do you want to do that? Tell us with some specificity what you want.”
On a visit to the White House yesterday, moderate West Virginia Senator Joe Manchin said they are making progress on a deal but offered little detail.