Biden approves bill aimed at preventing US economy from defaulting

Source : 112 Ukraine

The President hopes that raising the debt limit by $480 billion will be enough for the government to be able to do its job by December
10:52, 15 October 2021

U.S. President Joe Biden
Associated Press.

US President Joe Biden has written a bill aimed at preventing the country's economy from defaulting, the press service of the White House reports.

"On Thursday, October 14, 2021, the President signed into law: S. 1301, which provides for authority to increase the debt limit by $ 480 billion, which is expected to be sufficient to allow the Federal Government to continue to meet its full commitments through early December," the statement reads.

As it was reported earlier, on October 4, US President Joe Biden warned that if Republicans refuse to support a vote in Congress to raise the debt limit to $28.4 trillion, the country may face default.

US Treasury Secretary Janet Yellen has warned congressmen that the government will not have enough money until October 18 if Congress does not take steps to raise the federal debt limit.

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In late September, in response to the threat of a shutdown of the US public sector due to the end of funding and rising public debt, the US Congress passed a law to prevent the government from shutting down. Funding for government agencies was ending at midnight on October 1, when the new fiscal year begins in the United States.

The US government has a large budget deficit because spending exceeds tax revenues. To address this imbalance, the government borrows money by issuing debt bonds. There is a limit set by Congress for the issuance of these securities. This limit is repeatedly increased or limited.

Republicans in the Senate on Monday night blocked a Democrat-initiated bill aimed at raising the public debt limit to prevent the government from closing on Friday. Republicans in the Senate have said they will support a separate measure to expand public funding.

A shutdown in the United States is a situation in which the government is forced to cut spending and suspend the work of the public sector, and send civil servants home.

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