Congress: Short-term deal reached on debt limit
- By FederalSoup Staff
- Oct 07, 2021
What most economic observers described as a catastrophe waiting to happen has been avoided, with Congress coming to a short-term deal on the debt ceiling—which will guarantee some continuity in the economy and government, including federal pay.
The agreement will fund the government’s borrowing—just about all of it, in the trillions, taken on by the Trump, Obama and other previous administrations—through Dec. 3. By that time, the two parties in Congress, it is hoped, will manage to put together a mutually acceptable longer-term deal.
Employee organizations are guardedly happy with the news—their hesitation comes with the next agreement will have to be negotiated alongside agency spending.
“This agreement avoids a catastrophic and unprecedented default caused by the U.S. running out of borrowing authority sometime around Oct. 18,” the National Treasury Employees Union said. “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 added, emphasizing labor’s concerns.
NTEU, like other federal employee unions and good government organizations, continues to declare it wants Congress to come to longer-term solutions for the debt limit as well as government spending bills, in behalf of federal employees and the public.