Republicans in the US House of Representatives approved a plan on Wednesday that would increase the national borrowing limit in an effort to prevent a possible credit default, despite impending resistance in the Senate.
The “Limit, Save, Grow Act” increases the debt limit until March 2024 or until the sum rises to $32.9 trillion while dismantling a significant chunk of US President Joe Biden's program.
The Democratic-led Senate, despite the fact that the measure passed the house with a vote of 217 to 15 in favor, will prevent it from becoming law, according to The Hill newspaper.
Following the bill's passing, US House Speaker Kevin McCarthy blasted Biden, alleging that the US President was still omitting the country's financial issue.
“President Biden—ignorance of our country's financial situation must continue. You need to sit down and start negotiating now, he told the press.
According to US media sources, a plan that would increase the country's borrowing ceiling underwent a few last-minute amendments by Republican representatives in the US House of Representatives.
This was done in order to win over a number of GOP lawmakers who had opposed the measure in the past. Republican Study Committee chair Rep. Kevin Hern recognized that it takes a lot of work to address the worries and demands of members with a smaller majority.
The Hill stated that the Democratic-led Senate is strongly opposed to the measure, making it doubtful that it would become law. The plan, which the majority leader, Chuck Schumer, referred to as having a “extremist hard-right agenda,” has no chance of passing the Senate, he claimed.
The national borrowing ceiling will be increased by $1.5 trillion, or until the end of March 2022, according to the US daily.
In exchange, the Republican Party has put out a number of expenditure cut proposals that may save the nation up to $4.8 trillion.
The plan also suggests a ceiling on annual appropriations from the federal government, set at fiscal year 2022 levels. Additionally, for the following 10 years, expenditure growth will be capped at one percent annually.