The U.S. Senate on Thursday (June 1) passed bipartisan legislation backed by President Joe Biden that lifts the government's $31.4 trillion debt ceiling, averting what would have been a historic, first-ever default, Reuters reports.
The Senate voted 63-36 to approve the bill that was passed on Wednesday (May 31) by the House of Representatives, as lawmakers raced against the clock following months of partisan bickering between Democrats and Republicans.
The Treasury Department had warned it would be unable to pay all its bills on June 5 if Congress failed to act by then. Before the vote, senators tore through nearly a dozen amendments - rejecting all of them - before the final vote sending the bill to Biden for signing into law before Monday's (June 5) deadline.
With this legislation, the statutory limit on federal borrowing will be suspended until Jan. 1, 2025.