President Joe Biden and House Speaker Kevin McCarthy (Republican) reached a deal on the U.S. federal government debt ceiling agreement, which passed the Senate on the 1st (local time) following approval in the House. With the agreement passing the Senate before the debt ceiling deadline scheduled for the 5th, concerns over a federal government default have been effectively alleviated.
Major foreign media reported that the agreement passed the Senate vote with 63 in favor and 36 against that night. The agreement postpones the application of the federal government debt ceiling until January 2025, after the U.S. presidential election, while maintaining non-defense spending at a frozen level for the 2024 fiscal year starting this October and increasing military spending by about 3%.
Earlier, Senate Republican hardliners demanded an increase in defense spending, raising obstacles to the unanimous consent required for the 'fast track' (expedited bill processing) procedure. However, the floor leaders of both parties found common ground by promising an emergency defense spending bill reflecting their demands. Once President Biden signs the agreement, the 'default crisis' that has threatened the global economy will come to an end.
After the agreement passed the Senate, President Biden welcomed it in a statement on the White House website, saying, "No one gets everything they want in negotiations," and "this bipartisan agreement is a big win for our economy and the American people." He added, "Tonight, bipartisan senators voted to protect the economic progress we have hard-earned and to prevent an unprecedented default," and "They have once again shown that America is a nation that pays its bills and meets its obligations and will continue to do so." He also noted, "The work is not over yet, but this agreement is a significant step forward," and "I hope to sign it as soon as possible and announce it directly to the public tomorrow."
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