The U.S. Senate passed the debt ceiling bill late Thursday, granting permission for the country to borrow further. The bill was supported by 44 Democrats, 17 Republicans, and 2 independents, resulting in a 63-36 vote.
Bill Awaiting Presidential Signature
The bill now awaits President Joe Biden’s signature to officially authorize the suspension of the $31.4 trillion borrowing limit. Prior to this development, it was anticipated that the government would reach its borrowing cap by June 5. The expedited decision from both the House of Representatives and the Senate could potentially prevent a default, which would limit the government’s capacity to obtain additional funds or pay due bills. A default could also disrupt the international economy, impacting prices and mortgage rates in other nations.
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Discussions and Amendments in the Senate
Several debates were expected in the Senate before the final vote. Senators initially proposed 11 amendments to the debt ceiling bill, all of which were swiftly dismissed, paving the way for the final vote. Had any amendment been accepted, the entire bill would have been returned to the House, which could have further complicated the situation given the looming deadline.
President Biden’s Response
Democratic Majority leader Chuck Schumer told the Senate, “America can breathe a sigh of relief because we are avoiding default.”
President Biden has committed to signing the measure into law, labelling the bipartisan agreement as a “big win for our economy and the American people.” He emphasized that the work of regulators is ongoing and assured that he will enact the bill “as soon as possible.”
