WASHINGTON (AP) — The Senate approved legislation Tuesday to lift the nation’s debt limit by $2.5 trillion under a deal struck between party leaders, defusing a volatile issue until aft…
WASHINGTON (AP) — The Senate approved legislation Tuesday to lift the nation’s debt limit by $2.5 trillion under a deal struck between party leaders, defusing a volatile issue until after next year’s midterm elections while saddling majority Democrats with a tough vote. The 50-49 party line vote came just one day shy of a deadline set by Treasury Secretary Janet Yellen, who warned last month that she was running out of maneuvering room to avoid the nation’s first-ever default. The measure now moves to the House where a vote could come as early as Tuesday night, sending it to President Joe Biden’s desk. “This is about paying debt accumulated by both parties, so I’m pleased Republicans and Democrats came together,” Senate Majority Leader Chuck Schumer, D-N.Y., said of the agreement, which created a workaround that allowed Democrats to avoid a Republican filibuster. Despite a seemingly straightforward name, the nation’s debt limit does little to curtail future debt. Established in 1917, it instead serves as a brake on spending decisions already approved by Congress and the White House — some decades ago — that if left unpaid could cripple markets, send the economy into a tailspin and shake global confidence in the U.
