President Joe Biden signed the debt ceiling bill, which will raise the government's borrowing limit and prevent the U.S. from defaulting in a matter of days.
Early Saturday morning, “paperwork" delayed Biden from signing the bill. However, a few hours later, the deal between him and House Speaker Kevin McCarthy (R-Calif) was done.
The deal, called the Fiscal Responsibility Act, will suspend the public debt limit through Jan. 1, 2025, and cut non-defense spending to near fiscal 2022 levels, capping growth at one percent for the next two years, which will propose non-mandatory caps for the following four years. It also will cut back money aimed at the Internal Revenue Service and some unspent COVID-19 pandemic funds.
“Passing this budget agreement was critical. The stakes could not have been higher,” Biden said Friday night. “No one got everything they wanted, but the American people got what they needed. We averted an economic crisis and an economic collapse.”
The president praised McCarthy for his work and cooperation as coming to terms with an agreement took weeks.
“You know, he and I, we and our teams, were able to get along, get things done,” Biden said. “We were straightforward with one another, completely honest with one another, and respectful with one another. Both sides operated in good faith. Both sides kept their word.”
The Senate approved the measure on Thursday night in a 63-to-36 vote, as the government was facing a situation where it would no longer be able to pay all of its bills without borrowing money.
The deal also says the Congressional Budget Office says the legislation will reduce the deficit by $1.5 trillion over the next ten years.