Agreement to avoid US default and raise debt ceiling moves forward
The United States Senate took a step towards raising the federal government's debt ceiling - currently at $28.9 trillion - this Thursday (9), when it voted to limit debate on the first of two necessary measures to do so, while the Treasury Department pushes for action by next week.
In addition to the 48 Senate Democrats, 14 Republican senators and two independents voted to push forward the first of two bills needed to increase the Treasury Department's lending authority under an agreement drafted by Senate Majority Leader Chuck Schumer and by Republican leader Mitch McConnell.
The Senate voted 64 to 36 to enable the approval of the proposal that establishes an accelerated procedure for processing.
The House can vote on the bill itself, which sets fast-track rules to raise the debt limit, as early as Friday. If passed, the two Houses of Congress will need to vote next week on a second bill that, in effect, raises the debt limit.
President Joe Biden is expected to enact both bills once they are passed.
The House of Representatives on Tuesday approved this first proposal to circumvent the Senate's "obstruction" rule and ultimately increase the federal allowance for loans by a simple majority vote.
"I am optimistic that after today's vote, we will be on a direct path to avoiding a catastrophic default," Schumer said in a speech to the Senate.
The Schumer-McConnell debt ceiling deal comes just two months after Congress agreed to a short-term debt ceiling increase to avoid an unprecedented federal government default on its obligations, which would have catastrophic implications for the world economy.
Text translated using artificial intelligence.
