June 5, 2023
The U.S. Senate voted on Thursday night, June 1, to pass a bill that would extend the debt ceiling for two years and establish a two-year budget agreement on a broad bipartisan vote. The vote was 63-36, reports NBC News.
The debt ceiling—which has been in place since 1917—is a restriction Congress has put on how much money the federal government can borrow to pay its bills and allocate for future investments. Because the government usually spends more than it takes in, Congress needs to raise the debt ceiling fairly frequently.
Having already cleared the House on Wednesday, it now goes to President Joe Biden, who is expected to sign it and avert an economically catastrophic debt default with mere days to spare before Monday’s deadline.
The agreement was brokered by Biden, a Democrat, and House Speaker Kevin McCarthy, a Republican, after a lengthy stalemate and a frenzied few weeks of negotiations as the United States neared the cliff.
The final Senate vote came after 11 amendments were considered—a demand by various senators in exchange for agreeing to vote on the bill quickly. All of the amendments were shot down. That agreement allowed the Senate to skip a series of hurdles that could have, without unanimous consent, pushed America past the debt ceiling deadline Monday. Senators also wanted to leave town for a long weekend, hastening the procedural talks.
Once it is signed into law, the bill will cap spending for the next two years with a modest cut to nonmilitary spending and a modest expansion in defense spending. It includes conservative measures to claw back about $28 billion in unspent COVID relief funds, eliminate $1.4 billion in IRS funding, and overhaul the permitting process for energy projects.
The bill will restart federal student loan payments after a lengthy “pause” that began early in the pandemic. And it would impose work requirements for people up to 55 years old to get benefits under the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF).
Currently, work requirements are in place for recipients up to 50 years old. The SNAP and TANF changes include carve-outs for veterans, homeless people, and adults up to 24 aging out of foster care.
Research contact: @NBCNews