The possible insolvency of the USA has been averted: The second chamber of Congress voted surprisingly quickly on the debt compromise. US President Biden wants to sign it today.
Already at the beginning of the session on Thursday morning, local time, Majority Leader Chuck Schumer had made it clear that he would not end the US Senate session until the work was done:
“Any unnecessary delay or changes in the law would not only be an unnecessary risk, but a dangerous one.
The threat worked: a good twelve hours later, the second Chamber of Congress also adopted the so-called Fiscal Responsibility Act, with 63 yes and 36 no votes, three more than was necessary to pass it. A painful compromise, as Democrat Dick Durbin conceded: “But unavoidable at this point if we are to avoid default.”
debt ceiling will be suspended
The law provides that the US government can take out new loans again: The debt ceiling of currently 31.5 trillion US dollars will be suspended until early 2025. In return, budget spending will de facto be slightly reduced in the coming years. The deficit is expected to be reduced by $1.5 trillion over the next ten years. Spending less money had been a core demand of the Republicans.
No majority for higher spending cuts
But the compromise does not go far enough for many. Senator Rand Paul from Kentucky, for example, complained that the deal negotiated by President Joe Biden and Republican Speaker of the House Kevin McCarthy was not conservative. But his attempt to re-tweak the package to push for more severe spending cuts didn’t get the 60 votes it needed.
There was also a need for discussion when it came to the defense budget, which will continue to rise to a record level of 886 billion US dollars in the coming year. But here, too, the law only provides for increases of one percent for the years thereafter. That’s unacceptable given Russia’s war of aggression in Ukraine, threats from Iran and China, said Texas Republican John Cornyn.
“The threat level isn’t getting any smaller, it’s getting more serious. And automatically limiting the defense budget as a result is unacceptable.
amendments rejected
But the increase in the defense budget was also rejected in the voting marathon that evening – just like all eleven amendments to the debt compromise. This also leaves another passage in the law that is particularly controversial among Democrats: the accelerated approval for the completion of a gas pipeline in West Virginia. Given the slim majorities, that’s a concession to Democratic Senator Joe Manchin, who is at odds with the Biden administration on energy and climate issues.
After the vote in the House of Representatives, the top Republican McCarthy had already cheered: “Fabulous! One of the best evenings I’ve ever experienced here!”
Biden signs today
But in the end, according to PBS correspondent Lisa Desjardins, the Democrats probably won in this political poker game about the debt ceiling because the law left enough loopholes for the Biden government.
The US President thanked Congress for the agreement that night. It is a great asset to the economy and to the American people. And he is looking forward to signing the law as soon as possible, i.e. this Friday.
2023-06-02 04:41:38
#debt #dispute #Senate #votes #compromise
