Senate approves bipartisan bill suspending debt limit and averting default

WASHINGTON, DC – JUNE 01: U.S. Senate Majority Leader Charles Schumer (D-NY) walks to his office at the U.S. Capitol on June 1, 2023 in Washington, DC. The Senate is expected to take up The Fiscal Responsibility Act, legislation negotiated between the White House and House Republicans to raise the debt ceiling until 2025 and avoid a federal default. The House passed the bill last night with a bipartisan vote of 314-117. (Photo by Kevin Dietsch/Getty Images)

The Senate has given final approval to bipartisan legislation that suspends the debt limit and imposes new spending caps. The passage of the bill, which received a 63-to-36 vote, marks the end of a political showdown that began after Republicans won a narrow majority in the House. President Biden expressed his support for the bill and promised to sign it promptly.

Key Details:
1. The passage of the bill averts the possibility of a government default and ends a political showdown that began when Republicans gained a majority in the House.
2. President Biden engaged in negotiations with Speaker Kevin McCarthy after the latter passed a Republican fiscal plan in April, leading to the compromise reached last weekend.
3. President Biden welcomed the passage of the bill and pledged to sign it, highlighting its importance for the economy and the American people.
4. The legislation suspends the $31.4 trillion debt limit until January 2025, allowing the government to borrow unlimited sums to pay its debts.
5. The bill also sets new spending levels that will be tested as Congress begins drafting its annual spending bills. It includes policy changes on energy project permitting and work requirements for social benefits.
6. Senate leaders resolved a last-minute flare-up over Pentagon funding, addressing concerns raised by Republicans who believed the debt-limit package underfunded the military.
7. The Senate passage, following overwhelming approval in the House, relied on support from Democrats, with 44 of them and two independents joining 17 Republicans in favor of the bill.
8. Republican critics argued that the bill fell short of adequate military spending and called for a commitment to address it through an additional funding bill.
9. Senate Majority Leader Chuck Schumer urged swift action and emphasized the need to avoid default before the June 5 deadline set by Treasury Secretary Janet L. Yellen.

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