WASHINGTON (Reuters) – Republican U.S. House of Representatives Speaker Kevin McCarthy on Wednesday plans to unveil a plan to raise the nation’s debt ceiling by $1.5 trillion, according to a source familiar with the plan.
The U.S. federal government has already reached its $31.4 trillion borrowing limit and by this summer is expected to hit a point where it will no longer be able to meet its financial obligations. Without action by the divided Congress, that would trigger a historic default that would shake the U.S. and world economies.
President Joe Biden’s Democrats, who also control the Senate, have been at loggerheads with Republicans for months over next steps on the limit, with the White House insisting Congress lift the borrowing limit without conditions, as it did three times under Biden’s Republican predecessor, Donald Trump.
(Reporting by Richard Cowan; Editing by Scott Malone and Nick Macfie)
