US House of Representatives passed a bill Tuesday evening to avert a government shutdown and suspend the debt ceiling. The bill was passed 220-211 but is expected to be rejected by the Senate. The bill would fund the government through Dec. 3 and suspends the debt limit through December 2022. The government would face shut down on Oct. 1 and the US could default on its debt sometime in October if Congress does not act. As the bill heads to the Senate, Republicans are threatening to block it, which could leave Democrats scrambling to find another way to avoid a federal funding lapse — or even a first-ever default on US debt. Worries about a looming default and the economic damage it would cause contributed to a US stock market drubbing on Monday. Congress has to pass a funding plan by Sept. 30 to prevent a shutdown. Separately, the US will exhaust all of its options to keep paying its bills sometime in October, Treasury Secretary Janet Yellen has told congressional leaders. Senate Minority Leader Mitch McConnell, R-Ky., has said Republicans will vote for a standalone funding bill but not legislation with a debt limit suspension attached. While Democrats have pointed out that the GOP signed off on huge emergency coronavirus relief bills since the last debt ceiling suspension, Republicans have said their counterparts should move to prevent default on their own as they prepare to pass a mammoth spending bill without the GOP. Ahead of the House vote, Senate Majority Leader Chuck Schumer, D-N.Y., warned Republicans that failure to raise the debt ceiling could wreak havoc on the economy and critical government benefits such as Social Security. — Agencies
