Joe Biden you already have one of the documents on your desk more precious of his mandate, ready to be signed and sealed: the senate approved Thursday night the law to suspend the US debt limit until January 2025 and when the president signs to enact it, the country will have thus avoided an unprecedented default that would have triggered “catastrophic” consequences. for the United States and the world economy.
The upper house, with a Democratic majority, it only took 24 hours to approve the bipartisan project which on Wednesday obtained half approval in the House of Representatives, after arduous negotiations that lasted several weeks.
Lawmakers have been working under intense pressure as Treasury Secretary Janet Yellen warned the country would default next Monday if borrowing capacity was not suspended or reversed.
Moments after the Senate approved the measure by a vote of 63 to 36, Biden praised Congress for its efforts in a statement: “I can’t wait to sign this bill into law.” as soon as possible‘ he said. ‘Our work is far from done, but this agreement is a vital step forward and a reminder of what is possible when we act in the best interests of our country.’
Biden speaks to the country
The president will address the nation this Friday at 7:00 pm Washington time on the matter.
For Biden it was A big relief why suspend the debt limit until 2025 eliminate the threat of non-compliance until after the presidential election in November next year.
You can campaign for re-election without that weight on top. Also, the head of the White House he put the deal on his shoulder and together with the Chief of Deputies, Republican Kevin McCarthy, they crafted a bill that it achieved seduce center-right lawmakers of both sides and isolate the more extremist groups who opposed the project.
“We made it”
In addition to suspending the debt limit, the law limits non-defense spendingplaces increased work requirements for some social plan beneficiaries and recoups some unused Covid-19 relief funds, among other provisions.
Senate Majority Leader Chuck Schumer highlighted the Democrats’ role in the debt ceiling deal after the Senate passed the bill.
“Maybe we’re a little tired, but We made it”Schumer said. “So we are very, very happy. The violation was the giant sword that hung over the head of the United StatesBut thanks to the good work of President Biden, as well as Democrats in the House of Representatives and Democrats in the Senate, we are not defaulting.”
Senate Minority Leader Mitch McConnell, a Republican, issued a statement on the passage of the debt ceiling deal, saying “an important step toward tax health Eventually it will become law.”
Previously, he had gone to great lengths to ease concerns from his party’s defense “hawks” that the bill would limit Pentagon spending too much.
McConnell released a statement with Democrat Schumer that “the debt ceiling agreement does not limit the Senate’s ability to allocate additional emergency funds to ensure our military capabilities are sufficient to discourage China, Russia and our other adversaries”.
what the law says
the bill suspends the US$31.4 trillion debt ceiling until January 2025. In return, some expenditures are limited to keep them stable – with the exception of military expenditures – in 2024 and limit their increase to 1% for 2025.
It also provides for a $10,000 million reduction in funds allocated to the treasury to modernize and tighten controls.
The agreement also provides the recovery of “billions of dollars of Covid funds that have not been spent” on the pandemic, without giving further details, which more leftist Democrats have questioned.
One of the major points of contention has been the change in the conditions for receiving some social aid, such as raising the working age from 49 to 54 for childless adults aspiring to food aid, but waives this requirement for veterans and homeless.
In addition, the law will officially end Biden’s proposed student loan payment freeze and greenlight a new gas pipeline in Appalachia that many Democrats oppose.
ap
Source: Clarin
Mary Ortiz is a seasoned journalist with a passion for world events. As a writer for News Rebeat, she brings a fresh perspective to the latest global happenings and provides in-depth coverage that offers a deeper understanding of the world around us.