The two top leaders in the Senate found a way out of the looming debt crisis. It was a sharp departure from the standoff a month ago that pushed America to its first-ever default. This gives the Senate Democrats a one-time pass to raise the ceiling through a simple majority vote.
A major mid-December economic fallout was avoided as the Republican Senate members moved away from brinkmanship to empower Democrats to raise the debt ceiling on their own. The bill was cleared in the chamber in a 59-35 vote, it moves to Joe Biden for his signature.
The measure would give the Senate Democrats a free hand to raise the ceiling through a simple-majority vote. It no longer has to face the usual 60-vote hurdle to push legislation forward.
The agreement comes months after Republicans demanded that the Democrats allow an increase in the debt ceiling through budget reconciliation. That would have allowed the Democrats to push through the bill minus Republican Senate votes.
But the Democrats refused and America was within weeks away from a potential default. It finally arrived at a deal with McConnell to raise the debt ceiling.
Mitch McConnell has said that the deal to raise the debt ceiling that has been approved by the Senate comes in the way the Republicans wanted it. Democrats have raised the limit on their own and to certain figures on which the GOP can haul them up for their enormous spending.
The Debt Ceiling Agreement Staved Off A Fiscal Default
The bill that was passed in the Senate also staved off another fiscal red line. It avoided massive cuts of billions of dollars in Medicare payments and also agricultural subsidies.
The cap is expected to exceed $30T. this ensures that Congress doesn’t need another vote until the midterms next year.
The Senate cleared the 60-vote barrier on the debt ceiling through a 64-36 majority. 14 Republicans supported it.
But many Republicans were not happy at McConnell for allowing the raising of the debt ceiling.