The Senate passed legislation to fend off a debt ceiling crisis late Thursday, effectively ending months of partisan haggling that brought the federal government to the brink of a default that would’ve likely triggered a financial disaster.... [+]The Democratic-controlled Senate passed the “Fiscal Responsibility Act” 63-36, suspending the debt ceiling until 2025 just four days before the deadline Treasury Secretary Janet Yellen set for when the U.S.
The Senate’s approval comes after the House on Wednesday passed the legislation 314-117, with 165 Democrats and 149 Republicans voting in favor. In addition to allowing the federal government to continue accruing debt until the end of next year, the bill will cap non-defense spending at its current level in the next fiscal year and allow for a 1% increase in fiscal year 2025.The bill now heads to the desk of President Joe Biden, who helped negotiate the deal with House Speaker Kevin McCarthy and is widely expected to sign it before Monday’s default deadline.Biden and McCarthy announced Sunday they had reached a deal to prevent the U.S.