The U.S. House of Representatives approved on Tuesday the extension of the government debt limit until early December, a measure that will now have to be signed into law by the President of the country, Joe Biden, in order to prevent the Administration from incurring in possible defaults.
The Lower House has given the green light to the measure, with 219 votes in favor and 206 votes against, after it was approved in the Senate last Friday after an agreement was reached between Democrats and Republicans.
The parties have maintained for weeks their dispute on how to raise the debt ceiling of the Government, which expected to exhaust its emergency resources on October 18, with the risk of defaulting on its obligations beyond that date.
U.S. Treasury Secretary Janet Yellen warned that not raising the country’s debt ceiling would drag the economy into recession.
The approval of the temporary extension passed by Congress, which raises the ‘debt ceiling’ by $480 billion (more than 415 billion euros), has avoided a catastrophic debt default less than a week before the date set by the Treasury, although it is only a short-term solution and points to another possible fiscal crisis by the end of this year.
The dispute between the parties has yet to be resolved. Republicans insist that Democrats must act alone to address the debt limit through a process known as budget reconciliation. For their part, Democrats point out that the situation is one of bipartisan responsibility.
Senate Republican leader Mitch McConnell has already signaled that another battle looms when the debt ceiling deadline looms in December. In a letter sent last week to Biden, McConnell said Senate Republicans helped avert the immediate crisis, but warned that they will not cooperate with Democrats to raise the limit again.