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Democrats will put a debt limit suspension in bill that aims to prevent a government shutdown

Democratic congressional leaders on Monday said they will try to pass a bill that both prevents a government shutdown and suspends the U.S. debt limit as they try to dodge two possible crises in one swoop.

Congress faces a Sept. 30 deadline to fund the federal government. Separately, Treasury Secretary Janet Yellen has told lawmakers that the U.S. will likely not be able to pay its bills sometime in October if Congress does not suspend or raise the debt ceiling.

The House plans to vote this week on legislation that addresses both issues. The bill would fund the government through December and suspend the debt ceiling through the end of 2022, House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Chuck Schumer, D-N.Y., said in a joint statement.

The bill’s fate is uncertain. Republicans have said they will not join Democrats in voting to suspend the debt ceiling, raising the prospect of a default that could devastate the global economy.

Pelosi and Schumer on Monday said the GOP has an obligation to address the debt limit because the party helped to pass sprawling coronavirus aid plans last year.

Reference: CNBC