BNR – President Joe Biden signed legislation suspending the federal government’s $31.4 trillion debt cap on Saturday. By doing so, the United States avoids the first-ever default with only two days remaining.
This week, both the House of Representatives and the Senate enacted the law. It happened after Biden and House Speaker Kevin McCarthy struck a deal after tough exchanges. The Treasury Department had warned that if Congress did not act, it would fail to pay all of its dues on Monday.
Biden: Bipartisan Agreement Reached
Biden inked the legislation at the White House a day after touting it as a bipartisan achievement in his inaugural Oval Office address to the country. The legislative signing, which was closed to the press, represented a discrete, symbolic conclusion to a problem that had plagued Washington for months. Furthermore, the signing led Biden to cancel a trip to Asia. Furthermore, it threatened to force the United States into an unparalleled economic disaster.
“Thank you to Speaker McCarthy, Leader Jeffries, Leader Schumer, and Leader McConnell for their partnership,” the White House said. The White House listed the Democratic and Republican leaders of the House and Senate in a statement announcing the bill’s signing.
Critical Agreement
Later, The White House published a ten-second video of Biden calmly signing the paper. “It was critical to reach an agreement,” stated Biden on Friday. “It’s very good news for the American people.”
“No one got everything they wanted. But the American people got what they needed,” the US President added.
The law was approved by a vote of 314 to 117 in the Republican-controlled House and 63 to 36 in the Democratic-controlled Senate. According to Fitch Ratings, the United States “AAA” credit rating will stay under review. This occurs despite a deal that will allow the government to fulfil its responsibilities.
