Key Takeaways:
- The US Senate approved the bill to suspend the country’s debt ceiling.
- The development comes a day after the House of Representatives passed the bill in the lower chamber.
- Following the votes in both houses of US Congress, President Joe Biden now has to sign the bill into law.
YEREVAN (CoinChapter.com) — The US Senate passed bipartisan legislation raising the government’s $31.4 trillion debt ceiling. The bill, supported by President Joe Biden, essentially prevents what would have been an unprecedented default, as warned by US Treasury Secretary Janet Yellen.
The overwhelming approval in the Senate follows the bill that cleared the House of Representatives on June 1. Notably, it passed with a vote of 63-36, receiving approval from 44 Democrats, 17 Republicans, and two independents.
The next step is for Joe Biden to sign the bill into law.
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Senate Majority Leader Chuck Schumer of the Democratic party announced the news on his Twitter handle. Snatching the credit away from the Republicans, Schumer claimed that he and his colleagues “prevented a catastrophic default” that the opposition had planned.
“We passed this critical legislation to support American families, preserve vital programs, and avoid catastrophic default—and I look forward to President Biden signing it without delay,”
he wrote.
Biden Celebrates Debt Ceiling Suspension
President Joe Biden termed the bill “a big win for our economy and the American people.” He has every reason to celebrate.
Although he had to swallow his ego and come to the negotiating table, he received great relief despite repeatedly saying he would never.
The ceiling stood suspended for two years. This gives him enough room to concentrate on his reelection campaign next year.
Meanwhile, Senate Republicans rushed to claim victory after passing the debt ceiling bill, with their leader Mitch McConnell taking full credit for his party. Citing how Biden and Democrats had wasted months refusing to negotiate, he claimed the bill passed “thanks to House Republicans’ efforts.”
House Speaker Kevin McCarthy had been at the center of developments. His persistence forced Joe Biden to agree to a deal to avoid a catastrophic default finally.
“Tonight, the Senate passed legislation that will reduce federal spending by $1.5 trillion, begin to reform the infrastructure permitting process, finally rescind unspent COVID dollars, and cut spending at the IRS.”
McConnell announced in a press release.
However, according to Senate Minority Leader, the work is far from over. He vowed that his party would do everything to “control Washington Democrats’ reckless spending.”
With the debt ceiling suspended, the US has successfully avoided a default. Treasury Secretary Janet Yellen’s alarms have paid off.
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