President Joe Biden signs debt limit bill, avoiding US default
1 min read 04 Jun 2023, 06:21 AM ISTPresident Biden signed a bill suspending the US government's $31.4 trillion debt ceiling, averting a first-ever default with just two days to spare.
PremiumUS President Joe Biden signed into law a bill to suspend the nation's debt limit through 1 January 2025, averting what would have been a first-ever default with just two days to spare.
Raising the nation’s debt limit, now at $31.4 trillion, will ensure that the government can borrow to pay debts already incurred.
"I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our sacred obligation to our veterans," Biden said in a tweet.
"It was critical to reach an agreement, and it's very good news for the American people," Biden said, "No one got everything they wanted. But the American people got what they needed," he added.
By signing the US debt limit bill through 2025, it takes the threat of default off the table until after next year's presidential polls.
Biden touted the achievements of his first term as he runs for reelection, including support for high-tech manufacturing, infrastructure investments, and financial incentives for fighting climate change. He also highlighted ways he blunted Republican efforts to roll back his agenda and achieve deeper cuts.
Biden praised McCarthy and his negotiators for operating in good faith, and all congressional leaders for ensuring swift passage of the legislation. “They acted responsibly, and put the good of the country ahead of politics," he said.
In addition to restrictions on spending, the 99-page bill changes some policies, including imposing new work requirements for older Americans receiving food aid and greenlighting an Appalachian natural gas pipeline that many Democrats oppose. Some environmental rules were modified to help streamline approvals for infrastructure and energy projects — a move long sought by moderates in Congress.
It was a decidedly low-key denouement to a months long drama that unnerved financial markets at home and abroad and caused anxious retirees and social service organizations to make contingency plans in case the country was unable to pay all its bills.
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