Late on Wednesday, an agreement to postpone the debt ceiling was unanimously passed by the U.S. House of Representatives, lowering the likelihood of a possibly terrible default. If the Treasury runs dry, which may occur as soon as Monday, the Senate should approve the bill and then forward it to President Biden for his approval.
By a vote of 314 to 117 after 9 p.m. EDT on Wednesday, the House adopted the agreement, the result of days of discussions involving President Biden and House Speaker Kevin McCarthy (R-Bakersfield). The nonpartisan Congressional Budget Office estimates that the Act, which limits some non-defense expenditures and suspends the debt ceiling for 2 years, will reduce the federal deficit by about $1.5 trillion over the following ten years.
The legislation is now headed for the Senate, wherein it has the approval of both party leaders and is anticipated to pass as soon as Thursday.
A political win for both leaders, Biden and McCarthy’s arrangement prevented a disaster for the federal government.
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