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Senate leaders on Thursday announced a bipartisan agreement to temporarily increase the nation’s debt limit and the Senate has approved the legislation. The deal now heads to the House where it is expected to be approved before the Oct. 18 deadline.
This agreement avoids a catastrophic and unprecedented default caused by the U.S. running out of borrowing authority sometime around Oct. 18. A default could have delayed federal employee paychecks and interrupted countless other federal spending programs.
However, the short-term deal now pushes the default deadline into December, where it may coincide with the Dec. 3 expiration of the continuing resolution that has temporarily funded government agencies for the beginning of the 2022 fiscal year.
NTEU will continue to urge Congress to resolve both issues with longer term solutions that avoid a government shutdown for the rest of the fiscal year and a default on the nation’s debt.