Debt Limit Increase Approved In Senate Vote

Debt Limit Increase Approved In Senate Vote.

As the saying goes,” Why put off tomorrow, what you can do today” or the reverse in Washington. The U.S. Senate has finally voted on Thursday to pass a short term suspension of the debt limit temporarily avoiding a showdown over the nation’s borrowing limit allowing for the attention to now focus on two looming fiscal deadlines:  deep sequestration-related cuts and funding for the federal government. The legislation passed the upper chamber and allows for the debt ceiling to be raised to pay any bills the government racks up over the next 90 days. The Senate did reject amendments that would pair the debt limit with dollar for dollar spending cuts and prioritize how the bills are paid. One provision introduced by the House forces the Senate to write a budget by withholding pay if lawmakers do not pass a spending resolution. Though optimism is in the air to meet financial obligations until May 19, there is little hope fro an agreement on how to deal with $1.2 trillion of sequestration related cuts that kick in March 1. The fiscal cliff deal delayed it by two month and reduced its impact, but the consequence are still dire and unpopular among both sides. The implications include defense spending and non-defense spending i.e. community development, housing assistance, states’ education grant and federal agencies. The administration has an alternative “balanced” plan that couples spending cuts with revenue raisers and could replace the sequester, but the Republicans in Congress have said the lover chamber has already voted on a substitute bill for sequestration that the Democrats should consider.  Shortly after the measure passed today House Speaker John Boehner (R-Ohio) issued a statement reiterating the need for the Senate to pass a budget or no pay.






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