What is the Verdict of the US Senate on the Debt Ceiling Bill? Know the details here
On May 31, 2023, President Joe Biden’s new debt ceiling bill was overwhelmingly approved by the US House where it gained 314-117 votes and was passed to the Senate for approval. The Senate has given a verdict on June 1, 2023, and you can find all the details below.
What is the Verdict of the US Senate on the Debt Ceiling Bill?
The US Senate has finally decided to pass the Debt Ceiling Bill resulting in it being established by President Joe Biden, avoiding a potential threat of default on the nation’s debt. The bill was passed with a 63-36 ratio where 63 Senators said yes to the new bill.
Joe Biden on his Twitter account mentioned “Just now, Senators from both parties voted to protect our hard-earned economic progress and prevent a first-ever default.”
The bill will now reach the President to be implemented as soon as possible so that the nation’s default can be averted.
The Republicans have been against the bill since its announcement arguing that it would allow the Biden government to spend too much money and cause further issues.
Chuck Schumer, Senate Majority Leader said in his tweet that “We prevented a catastrophic default that would have decimated our economy and inflected immense pain on families.”
Moreover, The Senate has only approved the suspension of the debt limit, and all the other extra spending cuts were refused.
Here are all the spending cuts that were not approved according to the Senate:
| Amendments |
Yes |
No |
Not Voting |
| “To strike a provision relating to expediting completion of the Mountain Valley Pipeline.” |
30 |
69 | 1 |
| “To strike the waiver authority for Administration PAYGO” |
48 |
51 |
1 |
| “To rescind unnecessary coronavirus funds.” |
47 |
52 |
1 |
| “To provide appropriate adjustments to the discretionary spending limits, in the event of funding under a continuing resolution” |
48 |
51 |
1 |
| “To remove the sunset on modification of work requirement exemptions.” |
46 |
51 |
3 |
| “To require the imposition of additional duties with respect to articles imported from the People's Republic of China until trade between the United States and the People's Republic of China comes into balance” |
17 |
81 |
2 |
| “To provide adequate funding for defense and increase the rescission of funding for the Internal Revenue Service.” |
49 |
48 |
3 |
| “To secure the borders of the United States, and for other purposes.” |
46 |
51 |
3 |
| “To rescind discretionary appropriations in the event of a debt ceiling crisis period and to honor the full faith and credit of the debts of the United States in the event of a debt ceiling crisis.” |
35 |
62 |
3 |
| “In the nature of a substitute.” |
21 |
75 |
4 |
READ| What is the House Vote on Debt Ceiling Bill?
What is the Debt Ceiling Bill About?
The new debt ceiling bill by Joe Biden was initiated on 27th May 2023 and the bill mentioned that the debt ceiling limit should be suspended till 1 January 2025 so that the government can work on improving the condition. It was a bipartisan effort.
This bill was passed by the House of Representatives on 31st May 2023 faced a lot of backlash and troubles, and reached the Senate for final approval.
The new suspension of the debt limit means that the government can continue to borrow money until it pays all its bills. The bill further mentioned certain spending cuts that asked for the support of the Republicans as well.
READ| Explained: What is the new Debt-Ceiling Deal? Know about the key announcements
To conclude, the passage of the debt ceiling bill is a relief for the markets and for the economy. A default on U.S. debt would have been a major financial crisis. The bill does not address the underlying problem of the growing national debt, but it does provide some temporary relief.
The approval of this bill might be a good thing for the markets and for the economy. It avoids a default on U.S. debt, which would have been a major financial crisis.
