A majority of the US Senate has voted to raise the federal debt ceiling. A majority of Democrats and Republicans voted in favor.
As of January 1, 2025, the debt could exceed the previously set $31.4 trillion, the proposal says.
This prevents the US from running out of money.
President Biden called it “a huge win for our economy and the American people.” Biden can sign the law now. The Deadline June 5, since then payments from the state cannot be made in full and on time.
On Saturday, he and Republican House Speaker Kevin McCarthy reached a tentative deal. This was approved by the House of Representatives yesterday.
An agreement on the debt ceiling is also important for the rest of the world. Without an agreement, consumer confidence could plummet, resulting in lower spending. It will also have ramifications for foreign companies and stock markets.
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