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U.S. Congress approves debt-limit suspension, averting default

U.S. Congress approves debt-limit suspension, averting default

The Hindu
Friday, June 2, 2023 3:38 AM GMT

The U.S. Senate on June 1 passed bipartisan legislation backed by President Joe Biden that lifts the government’s $31.4 trillion debt ceiling, averting what would have been a first-ever default.

The U.S. Senate on June 1 passed bipartisan legislation backed by President Joe Biden that lifts the government's $31.4 trillion debt ceiling, averting what would have been a first-ever default.

The Senate voted 63-36 to approve the bill that was passed on May 31 by the House of Representatives, as lawmakers raced against the clock following months of partisan bickering between Democrats and Republicans.

The Treasury Department had warned it would be unable to pay all its bills on June 5 if Congress failed to act by then.

Also Read | Explained | What is the stalemate over the U.S. debt ceiling and what happens if the government defaults?

"We are avoiding default tonight," Senate Majority Leader Chuck Schumer said on June 1 as he steered the legislation through his 100-member chamber.

Mr. Biden praised Congress' timely action. "This bipartisan agreement is a big win for our economy and the American people," the Democratic president said in a statement, adding that he will sign it into law as soon as possible. He said he would make an additional statement on Friday.

Before the final vote, senators tore through nearly a dozen amendments - rejecting all of them during a late-night session in anticipation of Monday's deadline.

Read full story on The Hindu
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