Congress sends Biden $2.5T debt limit hike, avoiding default

WASHINGTON (AP) — Congress averted a catastrophic debt default early Wednesday morning after Democratic majorities in both chambers voted to send a $2.5 trillion increase in the nation's borrowing authority to President Joe Biden over lockstep Republican opposition.

Capping a marathon day, the House gave final approval to the legislation early Wednesday morning on a near-party-line 221-209 vote, defusing a volatile issue until after the 2022 midterm elections. The action came just hours shy of a deadline set by Treasury Secretary Janet Yellen, who warned last month that she was running out of maneuvering room to avoid the nation’s first-ever default.

“The full faith and credit of the United States should never be questioned," Speaker Nancy Pelosi said from the House floor shortly before the vote.

Yet the bill — which drew only one Republican vote in the House, from Illinois Rep. Adam Kinzinger — also saddled vulnerable Democrats with a tough vote on the cusp of an election year when both chambers will be up for grabs.

Republicans, meanwhile, said they were perplexed by the Democrats' scramble to act.

“Democrats have known this day is coming for two years and did absolutely nothing,“ said Rep. Kevin Brady, R-Texas.

Despite a seemingly straightforward name, the nation's debt limit does little to curtail future debt. Established in 1917, it instead serves as a brake on spending decisions already endorsed by Republicans and Democrats alike — in some cases decades ago — that if left unpaid could cripple markets, send the economy into a tailspin and shake global confidence in the U.S.

That hasn't stopped Republican saber-rattling. For months, they've used the debt limit to attack Democrats' big-spending social and environmental agenda while pledging to staunchly oppose the...