The victory of the Republicans in the House of Representatives could make it difficult for the Democrats to approve the debt ceiling in 2023Therefore, they would seek to advance it before the end of this year, according to the majority leader in the Senate, Chuck Schumer (New York).
If they fail, the Democrats may have to try a new Reconciliation process, in order to apply a simple majority.
Currently, the debt ceiling is just under $31.4 trillionbut that amount covers the necessary resources for the first semester of the following year.
With the best time in advance, the Treasury Department requires a new debt ceiling, so that it does not take “extraordinary measures” to continue with the operations of the federal Government.
“This could result in non-payment of interest or redeem Treasury Bonds at maturity, or miss scheduled payments for critical programs like Medicare, Medicaid, Social Security, or veterans’ benefits,” Congressional rules state.
Senator Schumer recognized the Democratic interest in approving the debt ceiling in the current session, known as ‘lame duck’, due to the time limit for legislators.
“We would like to achieve a debt ceiling in this period of work […] The best way to do it, as it’s been done the last two or three times, is bipartisan. And I intend to sit down with the Republican leader shortly and try to figure that out,” Schumer said.
The chairman of the Senate Finance Committee, the Democrat Ron Wyden (Oregon), considered that it was best to approve the debt ceiling at this time, to avoid complications.
“I don’t want this to be a problem next year,” Wyden said in a conference call with reporters.
Democrats are worried that Republicans will try to deal with repealing some recently passed reforms, such as Social Security benefits.
The leader of the Republican minority in the Senate, mitch mcconnell (Kentucky), considered that this matter could be dealt with until the following year.
“I don’t think the debt limit issue will be addressed until next year,” he said.
The Budget Committee of the House of Representatives recalls that the process of the new limit of the increase in the debt ceiling sometimes begins in that chamber.
It is also recalled that, in case of non-approval, President Joe Biden’s government could face trouble for the implementation of new laws approved by Congress.
Source: La Opinion