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The House of Representatives approved a bill of federal budget on Tuesday that would prevent the government shutdown and suspend the debt limit in a step towards preventing a possible economic catastrophe for the United States, reported CNBC.
The House approved the plan in a vote of 220 – 212. All Democrats voted in favor and all Republicans opposed.
However, Senate Republicans have threatened to veto the bill , which could leave Democrats scrambling to find another way to avoid a lapse of federal funds, or even a first US debt default . Concerns about impending default and the economic damage it would cause contributed to the US stock market crash on Monday.
Congress must approve a funding plan by 30 September to avoid a closure . Separately, the United States will exhaust all its options to keep paying its bills sometime in October, said Treasury Secretary Janet Yellen to the leaders of Congress.
The plan approved by the House of Representatives would keep the government in operation until December 3. It would also suspend the debt ceiling until December 2022. )
The bill also allocates $ 21, 600 million dollars to natural disaster aid and $ 6, 300 million dollars to resettlement Afghan Refugees.
Senate Minority Leader, Republican Mitch McConnell , has said that Republicans will vote on a budget bill federal independent, but not by legislation with a debt limit suspension attached.
While Democrats have pointed out that the Republican Party has passed huge emergency bills for coronavirus relief since the last suspension of the debt ceiling, Republicans have said their counterparts should act to prevent e l default on their own, as they prepare to pass a gigantic spending bill without the Republican Party.
Before the House vote, the Senate Majority Leader, the Democrat Chuck Schumer, warned Republicans that failing to raise the debt ceiling could wreak havoc on the economy and in critical government benefits such as Social Security.