The U.S. House of Representatives on Wednesday, September 29, supported an initiative to suspend the national debt limit until December 16, 2022. The vote was broadcast on the agency’s Web site.
The vote margin is slim: 219 lawmakers were in favor of the proposal, while 212 voted against it. The draft will now have to be considered by the Senate of Congress.
Earlier the U.S. Treasury Department warned that the country’s cash reserves could be exhausted as early as October if Congress does not increase or freeze the national debt ceiling.
Back in July, U.S. Treasury Secretary Jeannette Yellen sent a letter to Congress informing that if the debt ceiling was not raised by July 31 or the borrowing limit was not suspended, the country will default.
She also said that if the national debt ceiling was not raised or frozen, by the beginning of the new fiscal year, by October 1, the ability of the U.S. to pay its obligations would be undermined.
On Aug. 1, limits on the size of the U.S. national debt went back into effect. They had not been in effect for two years. At that time the country’s debt already exceeded its GDP, and in June this year it reached $28.5 trillion. The limit was restored at $22 trillion.