The deal proposes to suspend the debt ceiling until January 1, 2025, past the next presidential election, in exchange for cuts in federal spending and curbs on welfare programs for low-income families
After a tense month-long stand-off, in a show of support, the Democrats and the Republicans, in an overwhelming majority, voted to raise the United States’ debt limit, currently $31.4 trillion, to pave the way for the treasury to borrow and meet debt obligations and avert an unprecedented debt default that could trigger a major global economic downturn.
In a statement, President Joe Biden said, “Neither side got everything it wanted. That’s the responsibility of governing. I want to thank Speaker McCarthy and his team for negotiating in good faith.” Biden urged the Senate to pass the bill as quickly as possible. The US Treasury cautioned it would be unable to pay bills if the debt ceiling isn’t raised or suspended by June 5.