Senate Majority Leader Charles E. Schumer pushed through legislation on Thursday waiving the nation’s debt limit until January 2025, overcoming obstacles put up by defense hawks, conservative spendthrifts, and even environmentalist Democrats.
Late in the evening, the Senate comfortably passed the debt limit deal struck by President Biden and House Speaker Kevin McCarthy.
The 63-36 vote came only days before the June 5 deadline by which Treasury Secretary Janet Yellen had warned the debt limit must be raised to avert a first-ever default on the nation’s ability to pay its debts.
“America can breathe a sigh of relief,” said Mr. Schumer, New York Democrat. “For all the ups and downs and twists and turns it took to get here, it is so good for this country that both parties have come together at last to avoid default.”
The legislation now heads to Mr. Biden’s desk for his promised signature.
Its passage marks the end of a nearly six-month stand-off between the president and House Republicans.
Mr. Biden initially refused to negotiate on raising the debt ceiling in the face of Republican calls for spending cuts. The position held for over 100 days, but the White House relented once a hard deadline had been set by the Treasury Department.
The agreement hatched by Mr. Biden and Mr. McCarthy would waive the $31.4 trillion debt limit until after the 2024 presidential election — giving both sides some breathing room.
It would also claw back billions of dollars in unspent pandemic relief and cut IRS funding by more than $20 billion over two years.
Mr. Biden secured a win by keeping domestic spending flat for the upcoming fiscal year in the face of GOP calls for at least $130 billion in immediate cuts. Both sides found bipartisan agreement on boosting defense spending by more than $26 billion.
Republicans scored a victory by forcing Mr. Biden to agree to cap the growth of federal spending at 1% next year.
“We used the power we had to force the president to negotiate,” said Mr. McCarthy, California Republican. “We produced a bill that in divided government takes a step toward smaller government, less regulation, more economic growth, and more take-home pay.”
Source:Washington Times
