Democrats Set Debt Limit Increase At USD 2.5 Trillion Ahead Senate Vote

Senate Democrats on Tuesday announced they would bring up legislation to raise the debt ceiling by USD 2.5 trillion, moving to stave off the threat of a first-ever federal default until at least early 2023.

The figure would allow the government to continue borrowing to finance its obligations without further action by Congress until after the 2022 midterm elections.

All Republicans were set to oppose the measure, which was expected to pass the 50-50 Senate along party lines later on Tuesday, sending it to the House for final passage and then to President Biden for his signature.

The swift action was planned a week after party leaders announced a deal establishing a one-time, fast-track process to increase the debt ceiling on a simple majority vote, instead of the 60 votes needed to move most legislation through the Senate.

The vote was scheduled with little time to spare before a potential default. The Treasury Department had warned that it would be unable borrow to finance the nation’s bills soon after Wednesday.

Senator Chuck Schumer of New York, the majority leader said on Tuesday that the USD 2.5 trillion figure would be enough to punt the threat of another federal default past the midterm elections next year.