WASHINGTON – President Joe Biden signed legislation suspending the US government’s $31.4 trillion debt cap on Saturday, averting a first-ever default with just two days to spare.
The law was passed by the House of Representatives and the Senate this week after contentious discussions between Biden and House Speaker Kevin McCarthy.
The Treasury Department had warned that if Congress did not act by Monday, it would be unable to pay all of its payments.
Biden signed the law at the White House a day after touting it as a bipartisan achievement in his inaugural Oval Office address to the country.
The legislative signing, which was closed to the press, was a low-key, symbolic conclusion to an issue that had tormented Washington for months, led Biden to cancel an overseas trip to Asia, and threatened to drag the United States into an unprecedented economic disaster.
“Thank you to Speaker McCarthy, Leader Jeffries, Leader Schumer, and Leader McConnell for their partnership,” the White House said in a statement announcing the bill’s signing, naming the House and Senate Democratic and Republican leaders.
The White House later released a ten-second video of Biden calmly signing the document.
“It was critical to reach an agreement, and it’s very good news for the American people,” Biden told reporters on Friday. “Nobody got everything they want. However, the American people received what they required.”
The law was approved by a vote of 314 to 117 in the Republican-controlled House and 63 to 36 in the Democratic-controlled Senate.
Despite the arrangement allowing the government to pay its obligations, Fitch Ratings warned on Friday that the US’ “AAA” credit rating will remain under review.
Source: Reuters
