Senate approves short-term extension of the debt ceiling
The Senate approved the short-term extension of the debt ceiling in a 50-48 vote. The measure now goes to the House, which would have to be brought back next week to vote.
The bill raises the debt limit by $480 billion into early December and avoids a default, ending a weekslong standoff between Democrats and Republicans as the clock ticked down toward October 18, when the U.S. was expected to run out of borrowing authority.
House Majority Leader Steny Hoyer said Thursday night that the House will reconvene next Tuesday to vote on the bill.
Senate Majority Leader Chuck Schumer announced earlier Wednesday that a deal had been reached with Republicans. Eleven Republicans joined all Democrats in voting to end debate, avoiding a filibuster and clearing it for final passage shortly afterward.
"We have reached agreement to extend the debt ceiling through December. And it's our hope that we can get this done as soon as today," Schumer said earlier Wednesday.
Republicans had been blocking Democrats' efforts to suspend the debt ceiling with a simple majority vote in the Senate, meaning they would have needed 60 votes, which they did not have. GOP lawmakers have been pressing Democrats since July to instead use the budget reconciliation process to raise the debt limit without Republican support.
But on Wednesday, Senate Minority Leader Mitch McConnell reversed course, offering Democrats a way to raise the debt limit briefly without the threat of a Republican filibuster and keep the nation from heading into default for the first time ever.
"The Senate is moving forward with the plan I laid out yesterday to spare the American people a manufactured crisis," McConnell said on the floor Thursday morning. He said the plan resolves Democrats' excuse that they lack time to address the debt limit through the reconciliation process, saying "now there'll be no questions, they'll have plenty of time."
Treasury Secretary Janet Yellen has warned that the Treasury would exhaust so-called "extraordinary measures" being used to pay the bills if Congress did not act to raise the debt limit by October 18. She said it would lead to catastrophic consequences for the economy and Americans at home, plunging the United States back into a recession.
On Wednesday, the White House said its preference would be for Congress to address the debt ceiling now so it could move on to other business.
Asked in Chicago if he will sign the short-term deal into law, President Biden appeared to say, "We gotta see if the deal is done. I'm not sure of that yet."
Under the agreement reached Thursday, if lawmakers do not use the next few months to address the debt ceiling long-term, they could end up in December back where they were at the end of September facing the threat of default for a second time this year as well as a government shutdown. Last month, Congress passed a short term spending deal as well to keep the government running into December while Democrats work on their larger reconciliation package.
Jack Turman contributed reporting