Partly Cloudy
61°FPartly CloudyFull Forecast

House GOP preparing for debt showdown this summer

Published: Wednesday, April 24, 2013 11:31 a.m. CDT • Updated: Wednesday, April 24, 2013 11:33 a.m. CDT

WASHINGTON (AP) — House Republicans are preparing for another showdown over the debt ceiling this summer.

The House Ways and Means Committee passed a bill Wednesday to protect Social Security recipients and investors in Treasury bonds if the government hits the limit of its borrowing authority.

The bill would exempt interest and principal payments on Treasury bonds from the statutory debt limit. It would also exempt interest payments to the Social Security trust funds.

Republicans say the bill would avoid a default. Democrats say it prioritizes payments to foreign investors over funding important domestic programs.

In January, Congress suspended the government's borrowing limit until May 18, though Treasury officials are expected to take actions to delay a default until later this summer, perhaps in August.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Northwest Herald.

Reader Poll

How many days will you attend the McHenry County Fair?
Five
Four
Three
One or two
None