According to Reuters, with 63 votes in favor and 36 votes against, the bill to suspend the public debt ceiling has passed the "pass" of the Senate as lawmakers race against time to prevent the US government from falling into default. after months of wrangling between Democrats and Republicans. The bill was hastily approved by the Senate just a day after the House did the same.

“Time is a luxury that the Senate does not have. Any last minute delay or delay would be a risk and even a danger. America can now breathe a sigh of relief," Senate Democratic leader Chuck Schumer said in his address to the Senate.

 US Senate Democratic leader Chuck Schumer during a press conference after the bill's passage. Photo: AP

Welcoming the results of the Senate vote, President Joe Biden called it a "major victory" for Americans. "This bipartisan agreement is a huge win for our economy and the American people," Biden said in a tweet. With the approval of both houses of Congress, the bill will be moved to Biden's desk to be signed into law by the June 5 deadline, when the government will run out of money to pay the bills as warned by Mr. The U.S. Treasury Department.

President Biden and Treasury Secretary Janet Yellen and other US officials have warned of serious consequences if the government defaults, such as the US economy falling into a recession, the country's global economic leadership position. weakness and other uncertainties on a global scale. According to AFP, a report released by Mr. Biden's Council of Economic Advisers said that if the US defaulted on its debt, more than 8 million people could lose their jobs and the country's gross domestic product (GDP) would fall by 6% compared to the previous year. Present. The domestic stock market will decrease in value by 45% in the third quarter of 2023.

Schumer and Senate Republican leader Mitch McConnell have made good on their pledge to do all they can to speed up the ratification of the bill that Biden and House Speaker Kevin McCarthy agreed to.

In an effort to avoid the US government's debt default, on May 27, President Biden and Speaker of the House of Representatives McCarthy reached an agreement after weeks of negotiations on the issue of the public debt ceiling. The two sides agreed to suspend the imposition of a debt ceiling of $5 trillion for the two years to January 31,4, 1, and limit budget spending for the 1 and 2025 fiscal years.

According to Bloomberg, the bill imposes an $886 billion cap on national security spending and a $704 billion cap on non-security spending in fiscal year 2024. Those two numbers will be raised. USD 895 billion and USD 711 billion respectively in the fiscal year 2025. In addition, the two sides also agreed to recover the unused Covid-19 fund's budget, speeding up the licensing process for a number of energy projects. quality and increased eligibility for programs for the poor.

The Congressional Budget Office estimates the bill will save $1,5 trillion over 10 years. Once signed into law, the bill would suspend the US debt ceiling until January 1. This period of time will allow Mr. Biden and the US Congress to put aside the deeply divisive political issue until after the 2025 presidential election.

LAM ANH