US Senate leaders have reached an agreement that is not currently running out of government money. This was announced today by Democratic Majority Leader Chuck Schumer.
“We reached an agreement to raise the debt ceiling until early December,” Schumer said. The Senate can vote on the bill as early as Thursday, if senators agree to speed up the process. If not, the vote will be postponed until after the weekend.
Republican minority leader Mitch McConnell was the first to put forward a proposal on Wednesday to raise the debt ceiling to an undisclosed level, sparking protracted negotiations between leaders of the two parties. The Republican confirmed Thursday that an agreement had been reached.
The deal comes after weeks of tension between Democrats and Republicans over how to raise the debt ceiling. This sets the maximum amount that US states are allowed to borrow. If that amount does not rise, the government is expected to run out of money by October 18.
President Joe Biden on Wednesday accused Republicans of playing Russian roulette with the American economy and warned of dire consequences. Republicans have previously refused to vote to raise or suspend the debt ceiling. According to US media, Republicans can still demand approval of the proposal only if 60 senators vote in favor of it. In this case, 10 Republicans would have to vote with the Democrats.
If the Senate votes in favor of the proposal, the problems will temporarily disappear. Discussions are still ongoing about what the solution might look like after early December.
Biden earlier signed an emergency law preventing a shutdown until early December. US stocks are higher on Thursday after this news.
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