US raises debt limit to 571 trillion won over 'default concerns'... December deadline reset

The U.S., which was concerned about default this month due to the problem of increasing the debt limit, has now bought time until early December.

Senate Minority Leader Chuck Schumer said on the 7th (local time) that he and Republicans had reached an agreement with Republicans to extend the debt ceiling through early December, Reuters and other foreign media reported.

The agreement will increase the debt limit by $480 billion (about 571 trillion won), according to Senate advisers. The current federal debt limit is $28.4 trillion. If the deal is done, the debt ceiling will rise to about $28.9 trillion.

Congress passed a short-term bill to increase the borrowing limit of the Treasury by a certain amount by early December, allowing long-term measures to be taken in the meantime.

"If the bill passes, Congress will have several weeks to agree on a long-term debt ceiling increase or another interim measure," Reuters said.

The Senate is expected to hold a vote on the same day as soon as possible.

In the United States, which sets the federal debt ceiling by law, in 2019, Congress decided to suspend setting the upper limit until the end of July this year, but the subsequent legislation failed and has been financed through emergency means since August, and even this will be exhausted by the 18th. This raised concerns about default.

In response, the Democratic-controlled House of Representatives passed a bill to postpone the debt limit to December 16 next year, and passed it on to the Senate, but it was rejected twice because of the Republican Party's blockade.'

The deal came as Democrats accepted a compromise by Republican Senate Majority Leader Mitch McConnell to defer the debt limit to December.

The Republican proposal appears to be intended to allow Democrats to trigger a budget adjustment process and pass a long-term debt ceiling bill.

The Democrats had expected Republicans to cooperate in handling the debt limit bill, but the Republicans insisted on using the budget adjustment process, and the Democrats refused because of lack of time.

Using the budget adjustment process, the bill can only be passed with a majority of 100 seats in the Senate, but it is known that it can only be used three times a year.

"The new deadline will overshadow Democrats' excuses for running out of time," McConnell said on Wednesday. .

Reuters reported that "Democrats agreed to a two-month extension to the debt ceiling, but showed no interest in McConnell's insistence on using the budget adjustment power."

Republicans are concerned that Democrats may change the filibuster rules.

This is because if the filibuster rule cannot be used in the debt limit increase bill, the bill can be passed with a majority. President Biden has also hinted at the possibility of changing the rules.

"Republicans are more concerned about the possibility of destroying the filibuster," Republican Senator Kevin Kramer said when asked if his fellow lawmakers were concerned about a possible default.