WASHINGTON (NewsNation Now) — The Senate passed a fast-track plan for raising the debt limit. A key hurdle was cleared Thursday with the support of 14 Republicans and 50 Democrats, and that likely averts another last-minute rush to avoid a federal default.
The measure will eventually allow Democrats a one-time exemption to raise the country’s borrowing limit on their own, without GOP support, and they will have to increase it by a specific amount.
Both sides ultimately wanted to raise the debt ceiling because not doing so would have meant the country defaults on its debt, it’s essentially like America failing to pay its credit card bill, for the spending Congress has already done.
Economists warned this would trigger an immediate recession, and that federal spending for Social Security, Medicare and other important programs would immediately stop.
Democrats will avert this crisis on their own, likely next week, without having to worry about gaining the 60 votes necessary to overcome a filibuster.
A failure to suspend or lift the debt ceiling would lead to an unprecedented default that would allow the government to pay its bills only with the cash that comes into the Treasury. The U.S. credit rating would likely be downgraded, interest rates on loans would soar and a recession would likely ensue. In addition, payments to seniors, veterans and others could be delayed or even stopped.