LOGIN

Senate launches late night votes to stave off US default, wrap up Biden-McCarthy debt ceiling deal

by Madison Thomas
0 comment
debt ceiling package

Senate Launches Late Night Votes to Stave Off US Default, Wrap Up Biden-McCarthy Debt Ceiling Deal

Introduction

The Senate is taking urgent action to prevent a U.S. debt default. Late-night votes are underway to give final passage to a debt ceiling and budget cuts package negotiated between President Joe Biden and Speaker Kevin McCarthy. The goal is to send the package to Biden’s desk and have it signed into law before the approaching deadline. This article discusses the Senate’s efforts and the importance of quick action to avoid a devastating default.

Passage in the Senate and Cooperation Needed

Passing the debt ceiling package in the Senate requires cooperation between Democrats and Republicans, similar to the compromise reached in the narrowly divided House. Time is of the essence, as the Treasury has warned that the U.S. will run short of cash to pay its bills by the following Monday. Failure to act could result in economic turmoil. Senate Majority Leader Chuck Schumer urges his colleagues to complete the task and avoid a default.

Proposed Amendments and Challenges

While the Biden-McCarthy negotiations took place, several senators remained on the sidelines but now seek debate on their ideas to reshape the package. Conservative Republicans propose further spending cuts, while a Democrat aims to remove a controversial natural gas pipeline from the deal. Defense hawks express dissatisfaction with the level of military spending, given the need for additional funds to support Ukraine in its conflict with Russia. Despite these concerns, making changes to the package at this stage appears unlikely.

Support from Senate Leaders

Senate Republican leader Mitch McConnell and Schumer both emphasize the need for swift action. McConnell praises the House package and urges the Senate to make progress and turn it into law. The compromise reached in the House pleased few entirely but is considered better than the alternative of economic upheaval. Biden also commends the outcome, viewing it as good news for the American people and the economy.

Overview of the Debt Ceiling Package

The 99-page bill includes spending restrictions for the next two years, suspends the debt ceiling until January 2025, and introduces policy changes. These changes involve new work requirements for older Americans receiving food aid and the approval of an Appalachian natural gas line that some Democrats oppose. The bill also allocates more funds to defense and veterans while cutting back on new funding for IRS agents. It rejects Biden’s proposal to roll back tax breaks for corporations and the wealthy to address the nation’s deficits.

Negotiations and Support

Negotiators worked tirelessly to reach a compromise with the White House, and Speaker McCarthy faced challenges in garnering support among skeptics. Conservatives, led by the hard-right House Freedom Caucus, criticized the compromise for not achieving sufficient spending cuts. Some conservatives even hinted at attempting to remove McCarthy from his position. Former President Donald Trump refrained from commenting on the deal, saying, “It is what it is.” Democrats also expressed concerns about certain aspects of the package, such as the new work requirements and the approval of the Mountain Valley Pipeline. However, the bill received bipartisan support in the House, securing a robust 314-117 vote.

Conclusion

Although the debt ceiling package did not satisfy everyone, lawmakers recognized the importance of avoiding economic turmoil. The package imposes spending restrictions, suspends the debt ceiling, and introduces various policy changes. Democrats and Republicans must work together to ensure the bill’s passage in the Senate and avert a dangerous default. The nonpartisan Congressional Budget Office estimates that the package would reduce deficits by $1.5 trillion over the next decade, which aligns with Republicans’ goal of curbing the debt load.

What is the purpose of the Senate late-night votes regarding the debt ceiling?

The purpose of the Senate late-night votes is to prevent a U.S. debt default and finalize the Biden-McCarthy debt ceiling package. These votes are crucial to ensure economic stability and avoid potential turmoil.

Why is quick action necessary in passing the debt ceiling package?

Quick action is necessary because the Treasury has warned that the U.S. will start running short of cash to pay its bills by a specific deadline. If Congress fails to act, it could lead to a devastating default, causing economic upheaval both domestically and internationally.

What amendments are being proposed and debated in the Senate?

Several amendments are being proposed and debated in the Senate, including further spending cuts by conservative Republican senators and the removal of a controversial natural gas pipeline by a Democrat. However, making changes to the package at this stage seems unlikely.

How are Senate leaders involved in the process?

Senate Majority Leader Chuck Schumer and Republican leader Mitch McConnell are both urging swift action. McConnell praises the House package and encourages the Senate to make progress. Their leadership is essential in ensuring cooperation and timely decision-making.

What are the key components of the debt ceiling package?

The debt ceiling package includes spending restrictions for the next two years, suspension of the debt ceiling until January 2025, and various policy changes. It allocates more funds to defense and veterans, cuts new money for IRS agents, and rejects rolling back tax breaks for corporations and the wealthy. It also introduces new work requirements for older Americans receiving food aid and approves an Appalachian natural gas line.

What challenges and criticisms are being faced regarding the debt ceiling package?

There are challenges and criticisms from various senators and groups. Conservatives criticize the package for falling short of needed spending cuts, while defense hawks express dissatisfaction with the level of military spending. Democrats have concerns about work requirements for food aid recipients and the approval of the Mountain Valley Pipeline. However, despite these concerns, the package has received bipartisan support.

What is the overall goal of the debt ceiling package?

The overall goal of the debt ceiling package is to ensure the government’s ability to pay its debts by raising the debt limit. It also aims to address spending restrictions, make policy changes, and maintain economic stability in the long term.

You may also like

Leave a Comment

logo-site-white

BNB – Big Big News is a news portal that offers the latest news from around the world. BNB – Big Big News focuses on providing readers with the most up-to-date information from the U.S. and abroad, covering a wide range of topics, including politics, sports, entertainment, business, health, and more.

Editors' Picks

Latest News

© 2023 BBN – Big Big News

en_USEnglish