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House approves debt ceiling extension through early December

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Now that the Democratic-controlled House has handed the short-term extension, it’s cleared for President Joe Biden’s signature.

Treasury Secretary Janet Yellen had warned lawmakers that the federal authorities would seemingly run out of money by October 18 except Congress raised the debt ceiling, organising a ticking clock and excessive stakes.

Congress might not even have had that lengthy to behave for the reason that deadline is extra of a best-guess estimate than a set-in-stone deadline. That dynamic intensified strain on Democrats and Republicans to achieve a deal to handle the debt restrict.

However the momentary debt restrict extension is simply a short-term repair and units up one other looming potential fiscal disaster later this yr when it runs out.

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How a deal was reached

After weeks of partisan impasse over the problem, Senate Majority Chief Chuck Schumer introduced final week {that a} debt restrict deal had been reached, paving the best way for the Senate to vote to move the settlement. An aide accustomed to negotiations instructed CNN that the settlement will increase the ceiling by $480 billion, which is how a lot the Treasury Division instructed Congress it could must get to December 3.

The announcement of the deal got here a day after Senate Minority Chief Mitch McConnell publicly floated a debt ceiling proposal as a proposal to Democrats, a transfer that sparked negotiations between the 2 events to achieve an settlement.

House Majority Chief Steny Hoyer launched an announcement following the Senate’s passage of the stopgap invoice saying that the House would convene on Tuesday to take up and move the measure.

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The House didn’t take a stand-alone vote to approve the debt ceiling extension. As an alternative, the extension was handed when the House voted Tuesday night to approve a rule governing ground debate on three separate measures. The complicated procedural maneuver meant that lawmakers uncomfortable about taking a troublesome vote to extend the debt restrict didn’t must vote straight for it.

Why a disaster nonetheless looms

The issue is that the dispute between the 2 events over the best way to handle the problem has not been solved and motion will likely be required in only a few weeks to once more avert disaster.

Republicans have been insistent that Democrats should act alone to handle the debt restrict through a course of generally known as price range reconciliation. Democrats have argued the problem is a bipartisan accountability. They’ve to this point largely dismissed the opportunity of utilizing reconciliation, arguing that course of is just too prolonged and unwieldy and that the chance of miscalculation can be too excessive.

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McConnell despatched a letter to Biden on the finish of final week with a warning. “I write to tell you that I can’t present such help once more in case your all-Democrat authorities drifts into one other avoidable disaster,” he wrote.

“I can’t be a celebration to any future effort to mitigate the implications of Democratic mismanagement. Your lieutenants on Capitol Hill now have the time they claimed they lacked to handle the debt ceiling through standalone reconciliation, and all of the instruments to do it. They can’t invent one other disaster and ask for my assist,” McConnell wrote.

Elevating the stakes even greater, lawmakers may even must cope with the expiration of presidency funding in the identical timeframe because the debt restrict after individually passing a short-term extension to avert a shutdown that lasts solely through December 3.

This story and headline have been up to date with further developments Tuesday.

CNN’s Annie Grayer and Matt Egan contributed.

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