Short-Term Debt Limit Increase Moves Risk of Default to December
President Biden is expected to sign a bipartisan bill that increases the debt limit by $480 billion, temporarily avoiding default on the government’s financial obligations. The Treasury Department estimates the additional funding will keep the U.S. from default until December 3, 2021, or possibly longer, giving Congress more time to negotiate a long-term deal.
It is still uncertain how Congress will come to a long-term solution to address the issue, with Republican leaders presently insisting that Democrats pass the proposal without the minority party’s support. Without a debt limit suspension or increase on or around December 3, the federal government will risk being unable to meet all of its obligations. NARFE is evaluating what this could mean for federal employees and retirees. Please continue to check NewsLine and NARFE’s website for more information.
Also expiring on December 3 is a continuing resolution (CR), keeping the federal government funded at fiscal year 2021 (FY 2021) levels until that time. To avert a government shutdown, Congress will need to pass another CR or a larger FY 2022 spending package into law before then. NARFE National President Ken Thomas sent a letter on September 28 urging congressional leaders to avert a government shutdown.
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