Biden Increases US Debt Limit By $2.5T
President Joe Biden signed a bill raising the debt ceiling by $2.5 trillion, narrowly avoiding default on the nation’s debt.
The measure passed through the Senate and House on Tuesday. Both sets of votes were almost entirely along party lines.
Treasury Secretary Janet Yellen previously warned Congress that the federal government could default on its debt shortly after Wednesday if they failed to take action. The White House commended lawmakers for “fulfilling this fundamental legislative and constitutional responsibility.”
The move means the U.S. will avoid default until 2023.
Last week, Senate Majority Leader Charles Schumer (D-N.Y.) and Senate Minority Leader Mitch McConnell (R-KY) reached an agreement to allow a one-time exemption from the filibuster to approve the debt ceiling increase with a simple majority vote.