President Joseph Biden signed legislation on Saturday to raise the country’s debt ceiling with just two days left to spare, preventing an unprecedented federal financial default.
Biden thanked congressional leaders for their cooperation as the White House made the announcement of the signing, which took place in secret at the White House.
President Biden Signs Debt Ceiling Legislation
The US and the rest of the world’s economies would have been rocked by the Treasury Department’s prediction that the nation will start running out of money on Monday in order to pay all of its payments.
After weeks of contentious negotiations between the White House and House Speaker Kevin McCarthy, Republicans finally agreed to lift the nation’s borrowing cap after Democrats refused to agree to cut spending.
The debt ceiling is suspended until 2025, which is after the following presidential election, under the final agreement, which was approved by the House on Wednesday and the Senate on Thursday. Government expenditure is also constrained.
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Congress Reaches Agreement on Borrowing Limit
In an effort to ensure economic stability as the election season heats up, it provides lawmakers with budget targets for the following two years.
Increasing the nation’s debt ceiling, which is now set at US$31.4 trillion, will guarantee that the government may borrow to pay off existing bills.
It was crucial to pass this budget agreement. The stakes were at an all-time high, Biden declared Friday night from the White Office.
“Nothing could have been more disastrous,” he claimed, than for the nation to go into default on its debt.
Biden emphasized the compromise and consensus in the agreement, saying that while “no one received everything they wanted,” the American people did receive what they required.
“We avoided a financial catastrophe and a financial collapse.”
While running for re-election, Biden took the chance to highlight the accomplishments of his first term, including support for the high-tech industry, infrastructure investments, and financial incentives for combating climate change.
He also emphasized how he thwarted GOP attempts to reverse his program and enact further budget cutbacks.
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