WASHINGTON: Bipartisan legislation that raises the government’s $31.4 trillion debt ceiling was approved by the US Senate on Thursday, preventing what would have been the first-ever default.
After months of partisan fighting between Democrats and Republicans, the Senate voted 63-36 to adopt the package the House of Representatives enacted on Wednesday.
The Treasury Department had issued a warning that if Congress could not pass legislation by June 5 it would be unable to pay all of its payments.
On Thursday, Chuck Schumer, the majority leader in the 100-member Senate, declared that “we are avoiding default tonight.”
US President Biden commended Congress for acting promptly. The Democratic president issued a statement saying, “This bipartisan agreement is a big win for our economy and the American people,” and he added that he would sign it into law as soon as possible. On Friday at 7 p.m. EDT (2300 GMT), he stated that he would make an additional statement.
Biden and House Speaker Kevin McCarthy were directly involved during the bill’s development process.
Before the final vote, senators tore through nearly a dozen amendments – rejecting all of them during a late-night session in anticipation of Monday’s deadline.
This legislation will suspend the statutory limit on federal borrowing until January 1, 2025. Unlike most developed countries, the United States limits the amount of debt the government could borrow, regardless of any spending allocated by the legislature.
“America could breathe a sigh of relief,” Schumer said in remarks to the Senate.
