Republicans look to advance bill to forestall default amid debt ceiling battle

HRepublicans in Congress are attempting to pass a bill to allow the federal government continue to make interest payments, even though the rate of inflation is declining. debt ceiling It is hit.

It House House Ways and Means A committee is in place consider legislation Thursday The nickname is “Default Prevention Act” Rep. Tom McClintock (Republican from California) would provide a list of federal payment priorities for the eventuality that Congress cannot resolve the matter. debt ceiling impasse In time for the rapidly approaching June deadline

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It has been feared that the United States may default on interest payments for its $31 trillion debt. McClintock’s spending priorityization legislation is designed to prevent a default, and keep cash flowing towards certain programs.

Democrats and Republicans are at odds about how to increase the debt ceiling of $31.4 trillion. The U.S. cannot borrow additional money above the debt limit even though Congress has passed allocation bills that are heavy on deficit spending.

Janet Yellen (Treasury Secretary) announced the debt limit in January. In response, the department went through a number of changes. “extraordinary measures” Moved money to other government accounts in order to maintain federal payment flow.

However, Yellen predicted that these tactics would end by June. This means the U.S. won’t be able fund any of its programs including those mentioned above.