On May 31, 2023, President Joe Biden’s new debt ceiling bill passed overwhelmingly in the United States House of Representatives by a vote of 314-117 and sent to the Senate for approval. The Senate delivered its ruling on June 1, 2023, and you can find all the details below.
What is the US Senate ruling on the debt ceiling bill?
The US Senate finally decided to pass the Debt Ceiling Act, prompting President Joe Biden to adopt it, avoiding the potential risk of a national default. The law passed 63-36 with 63 senators agreeing to the new law.
Joe Biden mentioned on his Twitter: “Senators on both sides just voted to protect our hard-earned economic progress and prevent the first bankruptcy.”
The draft law will now be sent to the president to be implemented as soon as possible to avoid the state failing to fulfill its obligations.
Republicans have opposed the bill since it was announced, arguing that it would allow the Biden administration to spend too much money and cause even more problems.
Senate Majority Leader Chuck Schumer wrote on Twitter that “we prevented a catastrophic bankruptcy that could wreak havoc on our economy and cause immense pain to families.”
Furthermore, the Senate approved only the suspension of the debt limit, and all other additional spending cuts were rejected.
Here are all the spending cuts that the Senate failed to pass:
Revision | That thing | Are not | Do not vote |
“To introduce a provision regarding the accelerated completion of the Mountain Valley Pipeline.” | 30 | 69 | first |
“Abolish the immunity for PAYGO administration” | 48 | 51 | first |
“Drop unnecessary funding for coronavirus.” | 47 | 52 | first |
“Provide appropriate adjustments to discretionary spending limits, in the case of funding within the framework of a permanent solution” | 48 | 51 | first |
“Remove the sunset amendment of the work requirement waiver.” | forty six | 51 | 3 |
“Additional duties are required on imports from the People’s Republic of China until trade between the United States and the People’s Republic of China is balanced.” | 17 | 81 | 2 |
“Provide adequate funding for defense and increase IRS funding reductions.” | 49 | 48 | 3 |
“To secure the borders of the United States and for other purposes.” | forty six | 51 | 3 |
“Abolish discretionary allocations in the case of a debt ceiling crisis and respect full faith and confidence in U.S. debt in the event of a debt ceiling crisis.” | 35 | 62 | 3 |
“In the essence of substitution.” | 21 | 75 | 4 |
READ| House votes on what is the debt ceiling bill?
What is the debt ceiling law?
The new debt ceiling bill drafted by Joe Biden was introduced on May 27, 2023, and mentions that the debt ceiling should be suspended until January 1, 2025 so that the government can work to improve the situation. It is a bipartisan effort.
This law, passed by the House of Representatives on May 31, 2023, was met with many reactions and problems and was passed by the Senate for the last time.
The suspension of the new debt limit means the government can continue to borrow money until all of its bills are paid. The bill also mentions a number of spending cuts that Republicans are seeking support.
READ| Explanation: What is the new debt ceiling agreement? Get notified about important announcements
In short, the passage of the debt ceiling law is a relief for the market and the economy. A US default would be a major financial crisis. The draft bill does not address the underlying problem of the growing national debt, but it does provide some temporary relief.
Passing this law could be good for the market and for the economy. It avoided a US default, which would have been a major financial crisis.
Categories: Trends
Source: HIS Education