US Debt Limit Bill Passes the Senate

The US Senate has passed a bill that will prevent the country from defaulting by raising the debt limit.

The US Senate also voted on the Fiscal Responsibility Bill, which was agreed to after lengthy negotiations between the White House and the Republicans, and passed by a vote of 314 to 117 in the House of Representatives.

Although more than 10 proposed amendments were rejected in the Senate, the bill passed with 63 votes in favor to 36 votes against.

The bill, which provides for the suspension of the debt limit until January 1, 2025, will be submitted to US President Joe Biden for signature to become law.

Therefore, increasing the debt limit will prevent the federal government from running out of cash and going into default.

‘BRIEF’ EXPLANATION OF BIDEN

President Biden, in his written statement on the matter, stated that senators from both parties voted to prevent the United States from defaulting for the first time, and thanked Senate Majority Leader Chuck Schumer and Minority Leader in the Senate, Mitch McConnell, for quickly passing the bill.

Noting that this bipartisan deal is a big win for the American economy and the American people, Biden emphasized that the bill preserves the pillars of the “Invest in America” ​​agenda.

Underlining that his work is not done yet, Biden recalled that this agreement is a reminder of what is possible when acting in the interest of the country: “I look forward to signing this bill into law as soon as possible and speaking directly to the American people.” tomorrow.” he used the phrase.

NON-COMPLIANCE WOULD CAUSE SERIOUS CHALLENGES

US Treasury Secretary Janet Yellen said she is pleased that Congress has passed a bipartisan bill under the leadership of President Biden to suspend the debt limit and prevent the US from defaulting for the first time.

Noting that the law in question is critical to US economic growth and stability, Yellen stressed that a potential breach will bring serious hardship to American families.

Noting that Congress has a duty to ensure that the United States can pay its bills on time, Yellen said she believes that all of America’s faith and credit should be non-negotiable.

Noting that her focus now is on continuing to deliver on President Biden’s economic agenda, Yellen said, “Treasury will continue to effectively implement the Reduced Inflation Act to maximize economic benefits for American taxpayers, their families, and employees.” . he made statements.

THE PROJECT IS EXPECTED TO REDUCE THE BUDGET DEFICIT

In addition to the suspension of the debt limit, the bill, which provides for cuts in spending on some federal programs, plans to introduce new work requirements for some recipients of state aid, including food aid programs.

The bill provides for the recovery of relief funds that were provided but not used during the Covid-19 outbreak.

In addition, the bill aims to speed up the permitting process for some energy projects.

Based on the US Congressional Budget Office (CBO) assessment of the bill’s impact on federal debt and the budget deficit, if the bill passes and limited appropriations are implemented as planned , the budget deficit is expected to decrease by approximately $1.5 trillion over the next 10 years.

YOU HAVE TO INCREASE UNTIL JUNE 5

The US reached the debt limit of $31.4 trillion on January 19 and the US Treasury began taking extraordinary measures to avoid exceeding the limit and prevent a possible default.

The Treasury Department warned that these extraordinary measures could run out by early June.

In a recent letter to US House Speaker Kevin McCarthy on the debt limit, US Treasury Secretary Janet Yellen predicts, based on available data, that Unless Congress raises or suspends the debt limit by June 5, the Treasury will be short of resources to meet its obligations, it had reported.

The US Treasury’s cash level fell to $38.8 billion as of May 25, the lowest level since 2017 as debt limit negotiations continued. (AA)