The U.S. Senate approved a short-term deal on extending the debt ceiling so the country could avoid a default and government shutdown. The bill passed 50-48, with no Republicans voting to support the measure with Democratic Senators. The debt limit was raised by $480 million through December, just ahead of the Oct. 18 deadline, reports CBS News.
The deal only happened after 11 Republicans joined Democrats in voting to end debate and avoid a filibuster. “We have reached agreement to extend the debt ceiling through December.And it’s our hope that we can get this done as soon as today,” Senate Majority Leader Chuck Schumer announced on Wednesday before Thursday’s vote. This is still a temporary fix though, since it only allows the U.S. Treasury to continue paying bills through Dec. 3. Next, the U.S. House has to be brought back to Washington to vote on the deal before it reaches President Joe Biden’s desk.
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Although no Republicans voted for the measure, Senate Minority Leader Mitch McConnell said Thursday the two parties “negotiated through the night in good faith,” reports NBC News. McConnell said GOP Senators would not filibuster a temporary extension on the debt ceiling if the Democrats had a dollar amount on the increase. “This will moot Democrats’ excuses about the time crunch they created and give the unified Democratic government more than enough time to pass standalone debt limit legislation through reconciliation,” McConnell said Wednesday.
Before the deal was reached, Treasury Secretary Janet Yellen said the Treasury would run through all “extraordinary measures” to pay the bills if Congress did nothing before Oct. 18. After learning about the deal to avoid the filibuster, Yellen told CNN everyone “breathed a sigh of relief.” She previously said there could be catastrophic consequences without a deal.
“You know, what we’re really talking about here is can you count on the government to pay its bills? It’s not about future spending or taxes,” Yellen explained on CNN Thursday. “We’ve incurred bills. Can the government be counted on to pay those bills? And Americans, whether it’s people waiting for a Social Security check or military pay or bondholders who regard US Treasuries as the safest asset in the world, they need to never question that the United States will pay its bills.”
Biden does plan to sign the temporary debt ceiling deal when it reaches the White Hosue. “The President looks forward to signing legislation to raise the debt limit when it is passed by Congress,” White House deputy press secretary Karine Jean-Pierre said Thursday, reports The Hill.
