US President Joe Biden signs into law the debt ceiling bill that had been passed by Congress

US President Joe Biden signed the debt ceiling bill into law on Saturday, ensuring that the largest economy in the world would not face a potential default. The Fiscal Responsibility Act of 2023 grants the government the ability to raise the debt ceiling and continue borrowing, guaranteeing the timely payment of its obligations.

This action followed a demonstration of bipartisan support, as the US Senate successfully passed a bill on Thursday, which had been endorsed by President Joe Biden, to increase the government’s debt ceiling of $31.4 trillion.

By approving the bill with a vote of 63-36, the Senate prevented an unprecedented default. The bill had already been passed by the House of Representatives on Wednesday.

Lawmakers raced against the clock after months of partisan disagreements between Democrats and Republicans. The Treasury had warned that failure to raise the debt ceiling by Monday would lead to a default on the nation’s $31 trillion debt.

Senate Majority Leader Chuck Schumer declared, “We are avoiding default tonight.” President Biden praised Congress for their swift action, describing the bipartisan agreement as a significant victory for the American people and the economy.

President Biden actively participated in negotiations on the bill alongside House Speaker Kevin McCarthy. Senate Republican Leader Mitch McConnell indicated that the next budget dispute was on the horizon. In a statement, McConnell asserted that Senate Republicans would persist in reining in what they perceive as “reckless” spending by the Democrats in Washington.

Treasury Secretary Janet Yellen expressed her strong belief that the United States should never use its full faith and credit as a bargaining tool.

On Wednesday evening, the bill received approval from the Republican-controlled House with a vote of 314-117. The majority of those who voted against the bill belonged to the Republican Party.

Highlighting the urgency of the situation, Senator Schumer emphasized on Thursday that time was a luxury the Senate could not afford. He stressed that any unnecessary delays or last-minute obstacles would pose an unwarranted and potentially hazardous risk.

Throughout the discussions, various amendments were debated, including proposals for more substantial spending cuts compared to those outlined in the House-approved bill and a halt to the expedited final approval of an energy pipeline in West Virginia.