Senate passes debt deal to avoid default: The passage of the bipartisan deal ends a long and fractious standoff that pushed the nation to the brink of default
Senate Passes Debt Ceiling Bill, Clearing Final Hurdle to Avoid DefaultTing Shen–Bloomberg via Getty Imageshe Senate voted Thursday night to raise the government’s debt ceiling and cut trillions of dollars in spending, concluding a long and fractious political struggle that pushed the nation to the brink of default., will be signed by President Joe Biden with time to spare before the government’s borrowing authority is set to run out on Monday.
“No one gets everything they want in a negotiation, but make no mistake: this bipartisan agreement is a big win for our economy and the American people,” Biden, who negotiated the framework of the bill with Republican House Speaker Kevin McCarthy, said in a statement immediately after the legislation passed the Senate.
In the end, Congress once again managed to clean up a fiscal mess of its own making after a long impasse marked by contentious late-night negotiations and partisan bickering. The compromise was denounced by Democrats as being tilted too heavily toward Republican priorities after Biden went back on his vow not to negotiate with opponents who effectively threatened to tank the U.S. economy in order to extract spending cuts.
The legislation suspends the debt ceiling through Jan. 2025 and reduces government deficits by about $1.5 trillion over a decade, according to the Congressional Budget Office, by effectively freezing some funding that had been projected to increase next year and then limiting spending to 1% growth in 2025.
In a rare joint statement released ahead of the vote, Senate leaders Chuck Schumer and Mitch McConnell agreed to attempt to pass 12 annual spending bills this year in order to avoid the across-the-board spending cuts the debt deal calls for. The agreement paved the way for a quick final vote on the pact. “It does not fix this bill totally, but it is a march in the right direction,” said Sen.
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