US avoids default as Republicans allow Democrats to raise debt ceiling

Washington-DC

WASHINGTON (NEXSTAR) — The country is no longer headed toward financial crisis.

On Thursday, less than a dozen Senate Republicans voted on a plan to allow Democrats to raise the debt ceiling on their own, avoiding a looming economic catastrophe come Dec. 15.

“The American people can breath easy and rest assure there will not be a default,” Senate Majority Leader Chuck Schumer, D-N.Y., said.

The plan passed in the House earlier this week and now heads to the president’s desk. Once signed, it will allow Democrats to hold a second vote to officially increase the debt limit.

“This is about paying debt accumulated by both parties,” Schumer said.

But Republicans disagree.

“Joe Biden is the one who has spent into oblivion.” Sen. Josh Hawley, R-Mo., said. “He and the Democrats need to shoulder the responsibility now… I did not support that agenda and I’m not going to help him pay for it.”

Senate Minority Leader Mitch McConnell, R-Ky., who brokered the fast-track deal earlier this week said the crisis is now on Democrats to confront.

“It will enable them to raise the debt limit at a fixed dollar amount which they will specify,” McConnell said.

Raising the debt ceiling allows the government to pay for its bills for everything from social security to military salaries. Inaction from Congress would have prompted the first default in American history.

Copyright 2022 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Don't Miss

More Don't Miss

Coronavirus News

More Coronavirus

Trending Stories

Don't Miss

Your Local Election HQ

More Election

Local Sports

HS Sports Xtra: State's top teams roll in FRCC, FVA

Green Bay men oust Detroit at home

Bay frontrunners Green Bay East, West De Pere survive Thursday battles

Kimberly vs. Appleton East

NHM boys hockey uses discipline to get off to hot start

HS Sports Xtra: Ashwaubenon stuns No. 1 De Pere; FRCC & FVA highlights