The House of Representatives Tuesday night defeated a bill to raise the debt limit in a vote staged by Republicans to strengthen their push for deep spending cuts in negotiations with the White House.
Reuters reports the chamber overwhelmingly rejected President Barack Obama's call to increase the $14.3 trillion debt limit without conditions, by a vote of 318-97. Even some Democrats supporting Obama's position voted against it.
"I'm going to advise my members that they not subject themselves to the demagoguery that is sure to follow" if they vote for the measure, chief Democratic vote-counter Rep. Steny Hoyer said before the vote.
According to Reuters, polls show the public does not support a further increase in borrowing authority even as the Treasury Department scrambles to avoid a default that could push the country back into recession and rattle markets across the globe.
The Treasury Department has been tapping alternate funding sources, such as federal employee pensions, to cover its obligations since the debt limit was reached on May 16, but has warned it will run out of options if Congress does not act by August 2.
