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On Saturday, President Joe Biden signed a bill that extends the debt ceiling for two years, preventing an economically damaging debt default before the pending Monday deadline.
The Fiscal Responsibility Act of 2023, negotiated with House Speaker Kevin McCarthy, sets a two-year federal spending limit until January 1, 2025, and postpones the debt ceiling until after the 2024 election, reports Bloomberg.
With approvals from the House and Senate, this achievement bolsters Biden’s standing as a practical negotiator as he gears up to ramp up his reelection campaign.
Last week, the Senate endorsed the budget deal with a 63-36 vote. A day prior, the House approved the legislation with a 314 to 117 vote, with 149 Republicans and 165 Democrats united in support of the deal negotiated by Biden and McCarthy.
According to Bloomberg, Biden signed the bill behind closed doors without a ceremony.
In a statement released on Saturday, the White House acknowledged the signing and expressed gratitude to the leaders of Congress, including McCarthy and Senate Republican Leader Mitch McConnell, for their collaboration.
Also Read: Treasury Has Just $88B Left To Avoid A Debt Cap
The newly enacted legislation limits expenditure for the forthcoming two years. In addition, it incorporates conservative provisions to recover approximately $28 billion in unused COVID-19 relief funds.
However, the act eliminates $1.4 billion in IRS funding and reallocates around $20 billion of the $80 billion that the IRS received via the Inflation Reduction Act towards non-defense funding.
During his remarks at the Oval Office on Friday, Biden said, “I want to commend Speaker McCarthy. You know, he and I and our teams, we were able to get along and get things done.”
“We were straightforward with one another, completely honest with one another, respectful of one another. Both sides operated in good faith; both sides kept their word,” he added.
Now Read: Down To The Wire: How The Senate’s Debt Ceiling Vote Could Play Out
Photo: Shutterstock
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