Senate passes debt ceiling bill

Posted June 2, 2023

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

🎤 I was back on BBC News Newsday Live breaking down the Senate vote on the US debt ceiling issue.

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.”

🤔It raises the question of personal perspectives on negotiation. Do you enjoy negotiating? What are some of the tips that you would have shared?

Love to hear your thoughts below!

#Finance #Economy #Leadership #Negotiation