Senate passes compromise debt deal to avert default
Should the bill become law, it will suspend the debt ceiling until after the next presidential election.
The U.S. Senate on Thursday evening passed a compromise deal to suspend the debt ceiling until after the presidential election while capping the rate of spending growth in subsequent years.
The upper chamber endorsed the Fiscal Responsibility Act in a 63 to 36 vote. The House passed the bill on Wednesday in a 314-117 vote.
Preceding the final Senate passage were a series of votes on proposed amendments, none of which secured the necessary 60 votes to make it into the final bill.
Should the bill become law, it will suspend the debt ceiling until after the next presidential election, ensuring that the Treasury may borrow all the money it needs to pay the government's bills. The new debt limit will be the level of debt accumulated when the suspension expires.
Moreover, the legislation imposes spending cuts for fiscal year 2024, enacts work requirements for certain entitlement programs, and caps discretionary spending growth at 1% in 2025. Permit approvals for the Mountain Valley Pipeline also made it into the final version, which will go a long way in completing the long-delayed energy project.
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