President Biden signed the debt ceiling bill into law on Saturday days ahead of a default deadline set by the Treasury Department.
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The White House announced Saturday that Biden signed the legislation privately at the White House, it said The Associated Press.
The bill passed the House of Representatives on Wednesday and the Senate on Thursday night.
The bill restricts spending for two years and suspends the debt ceiling until January 2025. It also changes requirements for older Americans receiving food assistance and gives the go-ahead for an Appalachian natural gas pipeline. THE P reported
“Thank you to Chairman McCarthy, Leader Jeffries, Leader Schumer and Leader McConnell for their partnership,” the White House said. ia news release.
BREAKING: With just two days to spare, President Joe Biden has signed legislation that raises the nation’s debt ceiling, averting an unprecedented default on the federal government’s debt. https://t.co/o5Nsqlf2D5
— The Associated Press (@AP) June 3, 2023
In addition to the debt limit, the law sets a cap on non-defense spending, expands eligibility for some food stamp recipients and withdraws funds for COVID-19 relief, according to CNN.
The signing of the bill came with just a couple of days until the June 5 default date when the Department of Finance had warned that the county would be unable to pay some of its obligations and would be left without cash, which could have caused a “global economic catastrophe”, according to CNN.
“Passing this budget deal was critical. The stakes couldn’t have been higher,” Biden said from the Oval Office Friday evening, according to the P. “Nothing would have been more catastrophic,” he said, than defaulting on the country’s debt.
The US debt limit has been raised to $31.4 trillion, ensuring that the government can borrow to pay off debts already incurred. the P reported
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