(WSJ) The US House of Representatives voted on Tuesday to raise the debt limit by $480 billion. The treasury department expects the funds to last through to December 3.
The bill, which was approved by 219 against 206 legislators, now waits for President Biden’s assent.
The new limit will not open new spending but will cover debt interests, social security, and healthcare funding needs.
The Republicans wanted the Democrats to use a lengthier budget reconciliation procedure that would only provide for a debt increase instead of limit suspension till December 2022.
House Speaker Nancy Pelosi recalled the Congress from a break last week following an earlier warning by the Treasury Secretary Janet Yellen of a looming economic crisis.
Analysts now project that the funds will not last the country through to next year and might force Congress to address the debt ceiling matter again soon.
SPY is up +0.19% on pre-market, DXY is down -0.25%.
