On Tuesday evening, the House of Representatives passed the increase in the nation’s debt limit that cleared the Senate on Thursday, October 7. While this avoids an unprecedented debt default with less than a week to spare, the relief will be short-lived as the new debt limit deadline is projected to be sometime in December or January.
The vote also sets up the potential for a busy December, with government funding expiring on December 3. The new December/January deadlines for funding and the debt limit will allow Democrats to focus their attention on hammering out a deal on the bipartisan and reconciliation infrastructure packages. However, it’s not out of the realm of possibility that that too could bleed into December. The MBS team will be tracking the infrastructure packages as negotiations are sure to intensify in the coming days and weeks. If you have any questions, please contact Mike Dankler (email@example.com).