House passes debt ceiling extension to avert fiscal crisis

Oct. 12 (UPI) -- House lawmakers on Tuesday voted in favor of raising the U.S. debt ceiling by almost $500 billion -- with days remaining before the government begins defaulting on its obligations.

The House voted 219-206 along party lines with Democrats voting in favor of the bill and Republicans against it, sending the measure to President Joe Biden for his signature.

Once signed, the government will have a $480 billion bump in borrowing space -- and a little less than two months before the issue will become problematic again. The measure would resolve the debt ceiling crisis until Dec. 3.

Treasury Secretary Janet Yellen has warned lawmakers that the U.S. government would start defaulting on its debt obligations -- something it's never done before -- if there was no solution by next Monday.

Senate Democratic leader Chuck Schumer announced a bipartisan deal late last week after Senate Republican leader Mitch McConnell hinted at a GOP proposal to temporarily end the crisis. The Senate passed the extension Thursday.

If the U.S. government breached the debt ceiling, it would not be able to borrow money and would begin defaulting on payment obligations. The crisis would affect other things, as well, such as Social Security and military payments and would hinder financial markets worldwide.

While it's nearly universally agreed that ignoring the crisis would be catastrophic for the United States, former President Donald Trump criticized McConnell for making a deal during a rally last weekend in Iowa.