The Treasury Department had been sounding the alarm that on Monday the country would start running low on the cash it needs to pay its bills.
A potential national catastrophe has been avoided with President Biden on Saturday afternoon signing into law a bill that suspends the debt ceiling until 2025.
The White House made the announcement Saturday afternoon through a video on social media with the caption reading, “I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our sacred obligation to our veterans. Now, we continue the work of building the strongest economy in the world.”
The Treasury Department had been sounding the alarm that on Monday the country would start running low on the cash it needs to pay its bills, which would have sent shockwaves through the U.S. and global economies.
President Biden and House Speaker Kevin McCarthy have both said the bipartisan deal took a lot of compromise to get passed.
The bill the Commander-in-Chief signed Saturday suspends the debt limit until January 1, 2025 and restricts further government spending.
The 99-page bill restricts spending for the next two years, imposes new work requirements for older Americans receiving food assistance and greenlights an Appalachian natural gas pipeline many Democrats oppose.
It also hikes funds for defense and veterans and pulls back on new funding for the IRS.
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