Since default is imminent, senators are rushing to adopt a plan that would postpone the debt ceiling until January 1, 2025. However, it is unclear when a final vote would be held.
The bill can be sent to President Joe Biden for signature after the Senate approves it.
In order to move forward with a vote on the plan as early as Thursday, Senate Majority Leader Chuck Schumer and Republican Leader Mitch McConnell would need the support of all 100 senators. Any senator in the Senate has the power to stall a quick vote.
There is a lot of pressure on the leadership in both parties because of how little time there is to carry the law through Congress and how little space there is for error. The Treasury Department has stated that after June 5 it will no longer be able to pay all of the country’s debts in full and on time, which might result in a catastrophe for the world economy.
Senate Nears Debt Limit Deal
Senators will need to come to a time agreement in order to meet the deadline, and right now both sides are optimistic that can happen.
By suspending the debt ceiling until 2025, the risk of default would be eliminated until after the election. The plan limits non-defense spending, increases work requirements for some beneficiaries of food stamps, claws back some Covid-19 relief monies, and addresses the debt ceiling among other policy issues.
Bloomberg confirms the news on its official Twitter account:
The House passes legislation to raise the debt limit, sending it to the Senate for consideration as a default deadline nears https://t.co/Cr0KevOID6
— Bloomberg (@business) June 1, 2023
Despite opposition from both the far right and far left in the House, the legislation passed the chamber on Wednesday with a sizable amount of bipartisan support. The vote was 314 to 117 in favor in the end. The bill was supported by 149 Republicans and 165 Democrats, while it was opposed by 71 Republicans and 46 Democrats.
Senators will be able to make amendments to the bill, but because of Schumer’s Wednesday statement, no amendments will actually be accepted and the bill would instead be sent back to the House.
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A number of Republicans and a small number of Democrats have already declared their opposition to the bill. On Tuesday and Wednesday, a number of senators from both parties said.
Senator Bernie Sanders of Vermont, an independent who joins the Democratic caucus, votes against it. Senator Jeff Merkley, a Democrat from Oregon, is likewise opposed.
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