On Saturday, President Joe Biden acted by signing a bill into law, ensuring that the federal government’s debt does not result in a default.
The bill, called the Fiscal Responsibility Act, effectively suspends the debt limit until January 2025.
Additionally, it introduces measures to curb spending, projected by the Congressional Budget Office to reduce budget deficits by $1.5 trillion in the next ten years.
Expressing his satisfaction, President Biden tweeted, “I have just enacted a bipartisan budget agreement that not only prevents an unprecedented default but also reduces the deficit.
This move safeguards crucial programs such as Social Security, Medicare, and Medicaid, while honoring our sacred duty to our veterans.
Now, we press on in our mission to develop the most robust economy in the world.”
A deal was reached between House Speaker Kevin McCarthy (R-CA) and President Biden to finalize the bill, which received approval from both the House and the Senate.
The bill garnered more support from Democrats than Republicans, with some conservative lawmakers expressing dissatisfaction with its spending reductions.
In the House, 149 Republicans joined 165 Democrats in voting for the bill.
Similarly, the Senate saw 17 Republicans align with 46 Democrats to support the measure.
Notably, the bill received backing from prominent figures in both parties, such as Senate Majority Leader Chuck Schumer and House Speaker McCarthy.
Schumer tweeted, emphasizing the positive outcomes of the bill, stating that it prevented a potentially disastrous default that would have severely impacted the economy and inflicted immense suffering on families.
He also highlighted the preservation of most of the historic investments made and the removal of detrimental aspects from the MAGA Republican plan, which would have harmed families.
However, the bill encountered strong opposition from several Republican senators, including Sen. Mike Lee (R-UT) and Sen. Rand Paul (R-KY).
“This Biden-McCarthy debt deal is an absolute disaster for our nation, in my opinion,” Paul told reporters earlier this week. “It fails to make any substantial changes to the debt trajectory.
Our spending will increase yearly, and within two years, the debt will surge by a staggering $4 trillion. This deal lacks the conservative principles we need.”
McCarthy, on the other hand, hailed the deal as a victory for conservatives.
