America’s possible insolvency has been avoided: the second chamber of Congress voted surprisingly quickly on a debt compromise. US President Joe Biden wants to sign it today.
As early as Thursday morning’s session began local time, Majority Leader Chuck Schumer made it clear that he would not end the U.S. Senate session until the job was done:
“Any unnecessary delay or change in the law is not only an unnecessary risk, but a dangerous risk.
The threat worked: A full 12 hours later, the second chamber of Congress also passed the so-called fiscal responsibility bill by a vote of 63 to 36, three votes more than needed to pass it. A painful compromise, as Democrat Dick Durbin acknowledged: “But it’s inevitable at this point if we’re going to avoid a default.”
debt ceiling will be suspended
The law says the U.S. government can again take out new loans: the current $31.5 trillion debt ceiling will be suspended until early 2025. In return, budget spending will actually be slightly lower for the next few years. The deficit is projected to shrink by $1.5 trillion over the next decade. Spending less money has been a core demand of Republicans.
No Majority Asks More cut the expenses
But for many, the compromise is not enough. Sen. Rand Paul of Kentucky, for example, complained that the deal negotiated by President Joe Biden and House Republican leader Kevin McCarthy was not conservative. But his attempt to retool the package to push for tougher spending cuts fell short of the 60 votes he needed.
The defense budget, which will continue to rise to a record $886 billion next year, also needs to be discussed. But here, too, the law provides for an increase of only one percent in subsequent years. Republican John Cornyn of Texas said that was unacceptable given Russia’s war of aggression in Ukraine, threats from Iran and China.
“The threat level is not getting smaller, it’s getting worse. So automatic limits on the defense budget are unacceptable.
amendment reject
But the defense budget increase was also voted down in a marathon vote that night — as were all 11 amendments to the debt compromise. That also leaves out another passage of the law that has been particularly contentious among Democrats: expedited approval for the completion of a natural gas pipeline in West Virginia. Given the narrow majority, it’s a concession to Democratic Sen. Joe Manchin, who is at odds with the Biden administration on energy and climate issues.
After the vote in the House of Representatives, McCarthy, the top Republican, was ecstatic: “Great! This is one of the best nights I have ever experienced here!”
Biden signed today
But in the end, according to PBS reporter Lisa Desjardins, Democrats are likely to win the political poker game over the debt ceiling because the law leaves enough loopholes for the Biden administration.
The US president thanked Congress for the agreement reached that night. It’s been a huge asset to the economy and to the American people. He looks forward to signing the law as soon as possible, which is this Friday.