By Jessica Hartogs, Editor at LinkedIn News
The Senate passed the debt ceiling bill late Thursday in a 63-36 vote, sending the legislation to President Joe Biden to sign, and avoiding a potentially calamitous default. The Fiscal Responsibility Act suspends the country’s $31.4 trillion debt ceiling until 2025 and cuts federal spending. The Treasury Department had indicated that June 5 was the date the government would run out of cash. Biden said he would sign the bill into law as soon as possible, and he is expected to address the nation at 7 p.m. EDT on Friday.
The bill would:
- End Biden’s freeze on student-loan payments
- Accelerate energy and infrastructure projects
- Expand the age/work requirements for those who receive food aid
Newsday – US Congress approves debt deal – BBC Sounds
bbc.co.uk • 1 min read
https://www.bbc.co.uk/sounds/play/w172z06z2xlq7pv
With the Treasury Department’s deadline for the debt ceiling just days away, the Senate swiftly voted on a bill that would suspend the borrowing limit for two years while implementing spending caps and policy changes. Here are a few highlights from the bill:
➼ Deferment of the federal debt limit for two years, allowing unlimited borrowing to meet obligations and avoid default
➼ Cutting federal spending by $1.5 trillion over a decade, freezing funding increases and limiting spending growth to 1% in 2025
➼Stricter work requirements for food stamps, reclaiming funds for I.R.S. enforcement and unspent coronavirus relief, and expediting energy project permitting
➼Official end of President Biden’s student loan repayment freeze, signaling a shift towards responsible higher education financing
This negotiation process has clearly demonstrated the involvement of both parties, with the understanding that compromises had to be made to ensure there would be no default and economic instability…As it was stated, “not everyone will get what they want.”
Love to hear your thoughts below!
#Finance#Economy#Leadership#Negotiation