House OKs Debt and Financing Plan, urging to face the GOP | national news
Mark Zandi, chief economist at Moody’s Analytics, warned that if lawmakers allowed federal debt default, “this economic scenario is cataclysmic.”
In a report released by Democrats, Zandi warned that a potential slowdown in government funding cuts would cost 6 million jobs and that stock market losses would wipe out $ 15 trillion in household wealth.
Once a routine affair, raising the debt ceiling has become a political weapon of choice for Republicans in Washington since the arrival in 2011 of Tea Party lawmakers who refused to allow the increase. At the time, they opposed increased spending and the deadlock sparked a budget crisis.
Echoing this strategy, McConnell is setting the tone for his party, but some GOP senators might struggle to vote no.
Republican John Kennedy of Louisiana, whose state was hit by the hurricane and who is running for office next year, said he would likely vote for the increase. “My people are in desperate need of help,” he said.
White House press secretary Jen Psaki told reporters that “in our opinion this should not be a controversial vote.” Psaki said Congress has raised the debt ceiling several times on a bipartisan basis, including three times under President Donald Trump.
Representative Rosa DeLauro, the Democratic chair of the House Appropriations Committee, was forced to introduce another version of the bill on Tuesday after some members of the Democratic caucus opposed the inclusion of a billion dollars for Israel’s Iron Dome defense system, which uses missiles to intercept short-range rockets have been fired into the country.