Congress passed a debt ceiling increase Tuesday, a day ahead of what Treasury Secretary Janet Yellen had warned was the deadline for the United States to avoid default.
The Senate approved the legislation late Tuesday afternoon and the House passed it Tuesday night. It's now headed to President Biden's desk.
The resolution raises the debt ceiling by $2.5 trillion, putting the borrowing cap at $31.4 trillion. Yellen had warned Congress that if it didn’t lift or suspend the cap, the Treasury Department could default on its payments as soon as Dec. 15.
Senate Majority Leader Chuck Schumer said the increase would get the country through 2023.
“As I have said repeatedly, this is about paying debt accumulated by both parties, so I’m pleased we came together to facilitate a process that has made addressing the debt ceiling possible,” Senate Majority Leader Chuck Schumer said before the vote. “The American people can breathe easy and rest assured there will not be a default.”
The votes in each chamber were along party lines. But Tuesday’s vote was made possible by a Dec. 9 deal with Republicans that allowed for a one-time rule change that allows the Democrats to raise the ceiling with a simple majority.
Today’s vote marks the end of a months-long debate over the borrowing limit. Congress passed a short-term hike in early October.
The Senate Wednesday is expected to take up the National Defense Authorization Act. The big question is whether the Senate will vote on the $1.75 trillion Build Back Better package, which Schumer has said repeatedly he wants passed before Christmas. Lawmakers are still negotiating parts of the bill, including the state and local tax deduction cap, some Senate committees have yet to release their text and moderate Democrat Sen. Joe Manchin, whose support is needed for passage, has not said whether he would support the legislation.
