US Senate passes debt ceiling bill
The US Senate voted in favor of a bipartisan agreement to lift the government’s debt ceiling of $31.4 trillion (€29.4 trillion) on Thursday.
The Senate passed the bill with a vote of 63-36 in a race against time after months of partisan disagreements between Democrats and Republicans.
This comes after the bill had already been approved by the Chamber of Deputies on Wednesday.
It is the crucial next step towards final passage of the bill before a potential default that could have a devastating effect on the US economy.
The bill now goes to US President Joe Biden to be signed into law.
“America can breathe a sigh of relief, a sigh of relief that in this process we are avoiding default,” Democratic Majority Leader Chuck Schumer said in remarks to the Senate.
Earlier, Senate Republican Leader Mitch McConnell also expressed his desire to quickly pass the bill after it received overwhelming approval in the House.
What’s on the bill?
The 99-page bill restricts spending for the next two years, lifts the debt ceiling through January 2025 and changes policies, including new work requirements for older Americans receiving food aid and the green light for a natural gas line. in the Appalachians, which many Democrats oppose.
In the House, the bill passed by 314 votes to 117 on Wednesday, surviving a rebellion by 71 conservative Republicans who voted against it and argued that the cuts did not go far enough.
They ominously hinted at the possibility of trying to remove McCarthy from his position on the matter.
On the other hand, the Democrats had their own grievances. They criticized new work requirements imposed on Americans ages 50 to 54 in the food aid program, changes made to the influential National Environmental Policy Act and passage of the controversial Mountain Valley Pipeline natural gas project, which they said would harm efforts to combat climate change.
Avoiding economic turmoil
While the difficult compromise did not satisfy everyone, lawmakers believed it was a preferable alternative to potential economic turmoil, both domestically and internationally, if Congress failed to take action.
The Congressional Budget Office, a nonpartisan body, projected that the spending restrictions outlined in the package would lead to a $1.5 trillion reduction in deficits over a decade — a key goal for Republicans seeking to solve the national debt.
ss/rt (Reuters, AP)
Source: DW
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