The House passed legislation Thursday that will allow the government to borrow funds to pay bondholders and retirees if Congress does not raise the federal debt ceiling, Reuters reports.
Rachelle Younglai writes the bill moved through on a 221-207 vote with no Democratic support and the White House earlier warned Congress that it would veto the measure.
Younglai reports. bill would have the U.S. raise the debt ceiling exclusively to pay interest and principal on government bonds and Social Security retirement benefits.
Reuters reports several Democrats have called the bill a “Pay China First” law, as China is the U.S.’ largest foreign creditor and holds more than $1.2 trillion in U.S. government bonds.