Democrats Unveil Stopgap Funding Bill, Debt Ceiling Suspension As Goldman Warns Of Shutdown "Collision Course"

Moments ago House Democrats released the text of a long-awaited stopgap bill that would suspend the U.S. debt ceiling until after the 2022 congressional elections and temporarily fund the government to avert a shutdown after the end of this month.

The proposed debt ceiling suspension - to Dec. 16, 2022 - is needed because the "Drop dead date" when the Treasury runs out of accounting measures to stave off a payment default sometime in October.... ... although the exact date is tough to pin due to changing government revenues and outlays.

These are included to shame republicans into voting for the bill even though even RINOs such as Mitt Romney have said they would not vote for rising a debt ceiling.

As Bloomberg adds, "Republicans in the House and Senate are expected to vote against the bill over the debt ceiling provision. That makes it likely the Senate will have to revise the spending bill, stripping out the debt ceiling language, before the Oct. 1 deadline."

While most expect some amicable resolution after much huffing and puffing, the Democrat gamble with the debt ceiling makes the political endgame remains murky if Senate Republicans continue to block the suspension, and which as Goldman warns has substantially raised the odds of not only a government shutdown but also debt ceiling crisis, something the market is increasingly concerned about as judging by the growing kink in Treasury Bills around the Drop Dead date.

In terms of specific, House Budget Chairman John Yarmuth said Democrats alone can raise the debt ceiling using the fast-track budget process that bypasses the Senate filibuster - but doing so would require specifying a numerical debt ceiling increase rather than a time-limited suspension.

With neither party willing to budge, Goldman chief political economist Alec Phillips warns that the US is headed for a collision course on both the debt ceiling and a government shutdown.

https://www.zerohedge.com/political/democrats-unveil-stopgap-funding-bill-debt-ceiling-suspension-goldman-warns-shutdown