The Senate passed a House-approved bill late Thursday to raise the debt ceiling and cap government spending for two years, sending the legislation to President Joe Biden’s desk. He is expected to sign it on Friday, just three days before the US risked its first-ever sovereign debt default.

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US President Joe Biden tweeted saying the work is far from finished, but he is looking forward to signing the bill into law as soon as possible.

The compromise debt ceiling bill passed the Senate with enough votes from Democrats and Republicans to overcome the chamber’s 60-vote threshold to avoid a filibuster.

The driving force behind the turbo votes was simple: The Treasury Department’s June 5 deadline for raising or suspending the debt ceiling was just four days away.

Secretary Janet Yellen has said she believes the government will most likely be unable to meet its debt obligation after Monday, unless Congress votes to raise the debt limit.

Majority Leader Chuck Schumer spent much of the day Thursday hammering out an agreement with a group of Senate Republicans who demanded that he pledge to support a supplemental defense funding bill before they would agree to fast-track the debt ceiling bill.

The current House debt ceiling bill provided $886 billion in defense spending for fiscal year 2024, an increase of 3 percent year over year. That figure increased to $895 billion in 2025, an increase of 1 percent.

First Published:Jun 2, 2023 8:30 AM IST