US President Joe Biden said he will sign Saturday the bill passed by Congress this week to raise the debt ceiling and limit spending into law.
After arduous negotiations, the Senate and House of Representatives passed a bill that would raise the government’s debt ceiling of $31.4 trillion to avoid what would have been the first default by June 5.
Biden added in a speech regarding raising the public debt ceiling: “I did not agree to any cut in health care.”
He continued, “The budget gave priority to those who take care of the sick, including doctors and nurses, and those who care for veterans.”
“Nothing would be more irresponsible, and nothing would be more catastrophic than default,” Biden said, addressing the nation from the Oval Office.
“The bipartisan agreement protects infrastructure development laws,” he concluded.
And the Senate approved, by a vote of 63 to 36, the bill passed by the House of Representatives regarding raising the public debt ceiling.
Under the legislation, the federal borrowing limit is set to be suspended until January 1, 2025.
US Treasury Secretary Janet Yellen praised the passage of the law, saying, “The passage of the debt ceiling bill protects the full credibility and credit of the United States and maintains our fiscal leadership, which is critical to the growth and stability of our economy.” Debt to the United States as a bargaining chip.
The law imposes a limit on some expenditures, with the exception of military expenditures to keep them stable in 2024, and an increase of 1 percent in 2025.
It also provides for a reduction of $10 billion in funds allocated to tax services to modernize them and tighten controls.
Under the approved debt ceiling law, there is $886 billion in defense spending for fiscal year 2024, up 3 percent year-on-year.
This figure will rise to $895 billion in 2025, an increase of 1 percent.
The bill would also cut so-called non-defense discretionary programs, which include local law enforcement, forestry management, scientific research and others, for the 2024 fiscal year.
All discretionary spending will be capped at 1 percent growth in 2025.
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2023-06-02 23:48:10
