Key Points

  • The House passed a debt ceiling bill on Wednesday night, days before the U.S. Treasury runs out of money to pay its bills.
  • The Fiscal Responsibility Act was formed due to a deal between Speaker Kevin McCarthy and President Joe Biden in May.
  • Though the bill has been met with opposition along the way, it is currently the only solution to the looming debt default crisis. Senate Majority Leader Chuck Schumer has said the Senate will do all it can to move the bill quickly.

Debt default deadline days away as Debt Ceiling bill heads to the Senate

The Fiscal Responsibility Act, a bill meant to push the U.S. debt ceiling, passed in the House of Representatives on Wednesday night by a wide margin. It will now head to the Senate for another voting process ahead of the June 5, 2023, deadline for the U.S. Treasury to default on its debt.

The Fiscal Responsibility Act passed with 314-117 votes receiving more support from Democrats and Republicans than expected. The majority leader of the Senate, Chuck Schumer, has said that the Senate will do all it can to move the bill along quickly, signaling that it has a high expectancy of being passed and signed into law by President Biden.

The new developments culminated in a sensitive two weeks of tense negotiations between lawmakers on how to go forward as the economy was under the threat of debt default. The bill has now reached the Senate stage, and the leaders on both sides want to pass it within 48 hours.

Senate Majority Leader Chuck Schumer commented on the story, saying:

“There’s been a very good vote in the House. I hope we can move the bill quickly here in the Senate and bring it to the president’s desk as soon as possible.”

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