U.S. Congress to push for new debt limit
By Money Times
Oct 28, 2015 10:25 PM EDT
Oct 28, 2015 10:25 PM EDT
The US congress is in session to finalize a new budget deal before the current US House Speaker, John Boehner steps down for retirement starting this Friday, October 30th.
Besides that, congress will also decide on the request for an extension of the federal debt ceiling until March 2017 during this last session.
The new deal was on the table as Boehner is planning to take off the budget fights from being the highlight for the US presidential campaign.
The US News also reported that the federal borrowing limit must be raised immediately or the country could risk entering into its first-ever default.
If the deal went through, the government and other agencies will obtain another 2 years of budget relief worth around $80 billion in exchange for cuts in another sector of the budget.
According to an unofficial statement, the plan for budget relief is that $50 billion will be given in 2016 and another $30 billion in the following year.
Although the deal might be agreed by all members when the first $50 billion was ready for spending, Congress can still fight on how the money will be spent by the government and there might be no clear unity among the members.
However, as for now, members are more concern regarding increasing the limit first and will not discuss much regarding the spending until they are ready.
According to White House spokesman, Josh Earnest "We continue to urge Republicans to continue to engage constructively with Democrats to identify common ground to complete a budget and debt limit"
Besides that, the new deal will also help to prevent any fees hike for the Medicare Part B insurance premiums for the US citizen that is visited by doctors or needs to do a lab test according to Reuters.
The deal will also see congress might pouring more money into war funding according to people familiar with the matter. According to the current deal, another $32 billion in off war funding might be possible within this two years.
Yahoo News states that this is considered as the last move by Boehner to clear his name among the congress and allowing his successor to take over his place with a clean plate. Boehner resignation comes after lots of criticism that he had faced after failed attempt to unify his fellow Republican.
Members of the House of Representative will vote for a new speaker on Thursday and it is expected that Paul Ryan will receive full support from all members. He is considered as the most suitable candidate as Ryan himself had served as the Republican vice presidential nominee in 2012.
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