US President Joe Biden on Saturday signed into law the debt ceiling bill that had been passed by Congress preventing a potential default in the largest economy worldwide. The Fiscal Responsibility Act of 2023 enables the government to raise the debt ceiling and continue borrowing, ensuring the timely payment of obligations.
This comes after in a display of bipartisan support, the US Senate successfully passed legislation on Thursday, endorsed by President Joe Biden, to raise the government’s $31.4 trillion debt ceiling.
This crucial action averted the possibility of an unprecedented default. With a vote of 63-36, the Senate approved the bill, which had already been passed by the House of Representatives on Wednesday.
Lawmakers worked against the ticking clock after months of partisan disagreements between Democrats and Republicans. The Treasury had previously cautioned that failure to raise the debt ceiling by Monday would result in a default on the nation’s $31 trillion debt.
Senate Majority Leader Chuck Schumer said, “We are avoiding default tonight.” President Biden commended Congress for their prompt action, hailing the bipartisan agreement as a significant victory for the American people and the economy.
President Biden actively engaged in negotiations on the bill alongside House Speaker Kevin McCarthy. Senate Republican Leader Mitch McConnell signaled the next budget dispute. In a statement, McConnell asserted that Senate Republicans will persist to rein in what they perceive as “reckless” spending by the Democrats in Washington.
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Treasury Secretary Janet Yellen said, “I continue to strongly believe that the full faith and credit of the United States must never be used as a bargaining chip.”
House approved debt ceiling bill
On Wednesday evening, the bill received approval from the Republican-controlled House with a vote of 314-117. The majority of those who voted against the bill were from Republican Party.
Addressing the urgency of the situation, Senator Schumer remarked on Thursday “Time is a luxury the Senate does not have.”
He emphasized that any unwarranted delays or last-minute obstacles would pose an unnecessary and potentially hazardous risk.
During the discussions, various amendments were debated, including proposals to enforce more substantial spending cuts compared to those outlined in the House-approved bill and to halt the expeditious final approval of an energy pipeline in West Virginia.
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