The US Senate approved the measure to allow the US to continue paying its bills by a vote of 63 to 36.
The bill now just needs President Joe Biden’s signature to become law. His signature will be only ceremonial.
In a statement, Biden stated, “Senators from both parties voted to protect hard-won economic progress and prevent the first ever US bankruptcy.” The bill was approved by the House of Representatives on Wednesday, with bipartisan backing from Republicans and Democrats.
The measure permits the government to continue borrowing money to satisfy its financial obligations, allowing it to surpass the existing debt cap of $31.4 trillion. The measure does not establish a new monetary ceiling, but the borrowing ability would be extended until January 2, 2025, two months after the presidential election next year.
Furthermore, it proposes freezing most federal expenditure in the fiscal year beginning in October, with a 1% rise in the following 12 months.
The bill does not raise taxes and will not prevent the national debt from increasing by $3 trillion or more over the next year and a half until it expires.
Roll Call Vote 118th Congress – 1st Session (The US Senate)
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