A deal between the top Democrat and Republican in the U.S. Senate to help raise the federal government's $28.9 trillion debt limit will be tested today when the full chamber votes on whether to approve the measure, Reuters reported. The House of Representatives on Tuesday approved an unusual bill, agreed to by Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell, to sidestep the Senate's "filibuster" rule and ultimately raise federal borrowing authority by a simple majority vote. That deal comes just two months after Congress agreed on a short-term lift to the debt ceiling to avert an unprecedented default by the federal government on its obligations, which would have catastrophic implications for the world economy. Republicans have been trying to withhold their votes for more borrowing authority, contending that the increase would smooth the way for passage of President Joe Biden's $1.75 trillion "Build Back Better" domestic investment bill, which they oppose. Democrats note that the legislation is needed to finance debt largely incurred during Donald Trump's administration, when Republicans willingly jacked up Washington's credit card bill by about $7.85 trillion, partly through sweeping tax cuts and spending to fight the COVID-19 pandemic.
