On Thursday, the Senate passed a bill to suspend the nation’s debt limit through January 1, 2025, averting what would’ve been an economically disastrous default just days before the deadline.
The final vote was 63-36, and it will now be sent to President Joe Biden’s desk where he can potentially sign it into law.
Shortly after the Senate passed the bill, Biden praised Congress for its efforts saying, “I look forward to signing this bill into law as soon as possible.”
The president is set to address the nation on Friday on averting default.
“Together, they demonstrated once more that America is a nation that pays its bills and meets its obligations – and always will be. I want to thank Leader [Chuck] Schumer and Leader [Mitch] McConnell for quickly passing the bill.
At a press conference on Thursday, Schumer said the deal was a broad victory for the Democrats.
“Default was a giant sword hanging over America’s head,” Schumer said. “But because of the good work of President Biden, as well as Democrats in the House and Democrats in the Senate, we are not defaulting.”
Lawmakers raced the clock to prevent default before June 5, the day the Treasury Department warned it would no longer be able to pay all the nation’s bills on time – an event that could trigger global economic catastrophe.
Suspending the debt limit through 2025 will alleviate the threat of default until after the 2024 presidential election. The bill also caps non-defense spending, expands work requirements for some food stamps recipients and claws back about $28 billion in unspent COVID-19 relief funds, according to CNN and NBC News.
The bill will not make any changes to Social Security, Medicare, or Medicaid.
Senate Minority Leader Mitch McConnell, R-Ky., expressed his support of the new bill saying “[it’s] an urgent and important step in the right direction – for the health of our economy and the future of our country.”
Schumer said, “We may be a little tired, but we did it.”
The measure passed the House by a wide margin – 314 to 117 – on Wednesday.
