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With 63 votes in favor, the Upper House of the US legislature approved a law that will suspend the debt ceiling for the next two years. The approval comes after weeks of negotiations between the White House and the Republican wing of Congress and four days before the deadline by which the United States would have defaulted.
First modification:
“I look forward to signing this bill as soon as possible and addressing the American people directly on Friday,” US President Joe Biden posted on his Twitter profile moments after the Senate announced approval.
Negotiations led by the president and the speaker of congress, Republican Kevin McCarthy, resulted in a draft that passed the first legislative hurdle in the lower house of the US hemicycle last Wednesday.
“The United States can breathe easy because with this process we are avoiding default,” said Senate Majority Leader Chuck Summer. The approved measure suspends the current debt ceiling limited to 31.4 billion dollars until January 1, 2025.
Just now, Senators from both parties voted to protect our hard-earned economic progress and prevent a first-ever default.
No one gets everything they want in a negotiation, but make no mistake: this bipartisan agreement is a big win for our economy and the American people.
Our…
—President Biden (@POTUS) June 2, 2023
The agreement will prevent the United States Government from going into ‘default’ and being able to increase its level of debt to meet its financial obligations, however, the agreement toughens the requirements for American citizens to access social benefits and contemplates cutting the program of suspension of the educational debt, proposed by the president.
A financial catastrophe averted
The US Legislature was working against the clock, after constant warnings from Treasury Secretary Janet Yellen about the latent possibility that the US government would default and the ramifications it would have on the global economy.
Moments before the vote in the upper house began, Chuck Summer warned his colleagues that “time is a luxury that the Senate does not have,” referring to the constant obstacles that the Republican wing placed in negotiations to raise the ceiling. of debt.
After the vote, Summer congratulated the bipartisan work that went into passing the law, noting that if it didn’t pass, the United States would have defaulted, a situation that “would almost certainly cause another recession. It would be a nightmare for our economy and for millions of American families. It would take us years and years to recover.”
The debt ceiling was eventually raised, however, this approval could come at a great cost for the Biden administration, a cost that would be paid for by social programs and public spending for US citizens, paramount to Biden’s re-election aspirations. in the 2024 elections.
With Reuters and EFE
