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USA Passes Bill to Increase Debt Limit by $1.5 Trillion and Cut Government Spending

USA Passes Bill to Increase Debt Limit by $1.5 Trillion and Cut Government Spending

On Wednesday, House Republicans passed legislation narrowly, which links a debt limit increase into next year with nearly $4.8tn in deficit reduction measures.

They claim this should make Democrats negotiate conditions for raising the nation’s borrowing limit.

The bill, which was supported by dozens of Republicans, including Tom McClintock, was ultimately passed with a 217-215 vote along party lines, except for four Republicans who voted against the bill.

Key components of the measure include:

  • Raising the debt limit by $1.5 trillion
  • Cutting and capping discretionary spending
  • Rescinding unobligated IRS tax enforcement
  • COVID-19 relief
  • Overhauling infrastructure permitting and energy-related laws.

The Democrats in the House voted against the proposed bill and urged Congress to increase the debt limit unconditionally. They highlighted the significant effect of the proposed spending cuts on various government programs.

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It is anticipated that the Senate will disregard the bill; however, they will face mounting pressure to either discuss or implement a different proposal.

President Biden has cautioned that he will veto the Republican bill and remains steadfast in his demand for an uncontaminated increase in the debt limit.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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