2023-06-03 18:50:19
(CNN) — US President Joe Biden, Saturday, signed a bill to suspend the country’s debt limit until January 1, 2025, to avoid the first-ever American default on debt payments.
Suspending the debt limit until early 2025 takes the risk of default off the table until following next year’s presidential election. In addition to addressing the debt limit, the law sets caps on non-defense spending, expands work requirements for some food stamp recipients and reinstates some COVID-19 relief funds, among the rules.
The bipartisan agreement to address the debt limit was struck between the White House and House Republicans — the culmination of long days and late nights of contentious negotiations that at times seemed like they might completely collapse.
To finally get the bill in place, lawmakers marched around the clock before June 5, the date the Treasury Department warned it would not be able to pay all of the state’s liabilities in full and on time — a scenario that might have unleashed disaster. global economy.
The time frame to get the bill through Congress was very tight with little room for error, which put enormous pressure on the leadership in both parties. The House of Representatives passed the bill on Wednesday, and the Senate passed it on Thursday.
Once approved, the agreement faced backlash from the far left and the far right, but eventually gained support from a wide range of lawmakers, on both sides, many of them moderates.
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