On Monday, January 21, 2013, House Republicans detailed their plan for a short-term debt limit suspension.
This legislation reached the House floor on Wednesday and was approved 285 to 144.
NJ’s House members voted 6 for and 6 against along party lines. All of the Republicans voted yes and all of the Democrats voted no.
The plan would suspend the government’s borrowing limit until May 18, 2013, when the current 16.4 trillion dollar debt ceiling would be automatically increased to cover additional debt accrued in the interim.
House Republicans say punting the debt ceiling to May 18 is not so much a retreat as a “reordering” of the coming budget showdowns. House Republicans now take for granted that the first deadline, March 1, will come and go, and $110 billion in across-the-board spending cuts to defense and domestic programs will go into force.
“The sequester is going to go into effect on March 1 unless there are cuts and reforms that get us on a plan to balance the budget over the next 10 years. It’s as simple as that,” Mr. Boehner said.
The next real showdown will come by March 27, when the stopgap measure financing the government expires. Republicans have made clear that they are willing to let the government shut down at that time to force deep spending cuts or changes to Medicare and Social Security that would bring down deficits in the long run.
The Senate reconvened on Tuesday, January 22, 2013. In the upcoming weeks, Members of Congress will work on various important impending issues, including addressing the approaching debt ceiling.