What will happen with McCarthy’s debt ceiling bill in the Senate?

The House has passed Kevin McCarthy’s bill on raising the debt ceiling after Republican lawmakers unified behind the measure. McCarthy’s win would strengthen the Speaker’s bargaining position with the White House regarding the cap.

The count came down to 217-215, with Democrats uniting, and four Republicans- Andy Biggs of Arizona, Ken Buck of Colorado, Tim Burchett of Tennessee, and Matt Gaetz of Florida- voting against the bill.

What will happen with the debt ceiling bill in the Senate?

The proposal now goes to the Senate, where the Democrat majority has vowed to throw it out, saying that they will not compromise as far as paying the country’s debt is concerned. President Joe Biden has said he would veto the measure.

As the bill has been passed by the House, McCarthy has more leverage in negotiating with the President to demand that government spending be slashed if the Biden administration wishes to raise the debt limit.

The White House however is adamant that the limit be raised without conditions.

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What is the debt ceiling?

The debt ceiling is a legal limit on the amount of national debt that the government can rack up by borrowing. It’s a cap on the funds that the administration is authorized to borrow to meet its financial obligations.

Congress sets the debt ceiling, and if the government exceeds it, it cannot borrow any more money. They must therefore either reduce spending or default on debts.

The White House and Congress are headed for the impasse because the Biden administration does not want any conditions to be set for the limit to be raised, while Republican lawmakers are equally stubborn on their demands for curbing government spending.

If no decision is reached and the government is unable to honor its financial obligations, the US would be forced to default, which experts say would result in economic catastrophe.