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Debt ceiling deal heads to US Senate for approval Debt ceiling deal heads to US Senate for approval
(about 3 hours later)
Senate Majority Leader Chuck Schumer said it is imperative that the US avoids a default on its debtSenate Majority Leader Chuck Schumer said it is imperative that the US avoids a default on its debt
US Senators are working against the clock to pass a deal to raise the government's $31.4tn (£25tn) debt ceiling - and stop the world's biggest economy from defaulting on its debt.US Senators are working against the clock to pass a deal to raise the government's $31.4tn (£25tn) debt ceiling - and stop the world's biggest economy from defaulting on its debt.
The deal passed the House of Representatives by a vote of 314-117 on Wednesday, despite a few defections.The deal passed the House of Representatives by a vote of 314-117 on Wednesday, despite a few defections.
It now needs Senate approval before President Joe Biden can sign it. It now needs Senate approval, with some lawmakers hopeful that it will be voted on as soon as Thursday night.
The deal must pass by Monday 5 June, but may face challenges in the Senate from both Republicans and Democrats. The deal must pass by 5 June, when the US is forecast to hit its debt limit.
A default would mean the US government could not borrow any more money or pay all of its bills. It would also threaten to wreak havoc overseas, affecting prices and mortgage rates in other countries. If the deal is not approved by the deadline, a default would mean the US government could not borrow any more money or pay all of its bills. It would also threaten to wreak havoc overseas, affecting prices and mortgage rates in other countries.
What's in US debt ceiling deal and who won?What's in US debt ceiling deal and who won?
A simple guide to the US debt ceilingA simple guide to the US debt ceiling
With Republicans in control of the lower chamber of Congress and Democrats holding sway in the Senate and White House, a deal proved elusive for weeks until Mr Biden and House Speaker Kevin McCarthy inked a compromise last weekend.With Republicans in control of the lower chamber of Congress and Democrats holding sway in the Senate and White House, a deal proved elusive for weeks until Mr Biden and House Speaker Kevin McCarthy inked a compromise last weekend.
Leaders on both sides are now keen to move the deal rapidly through the Senate.Leaders on both sides are now keen to move the deal rapidly through the Senate.
Democratic Majority Leader Chuck Schumer warned on Wednesday: "I cannot stress enough that we have no margin, no margin, for error."Democratic Majority Leader Chuck Schumer warned on Wednesday: "I cannot stress enough that we have no margin, no margin, for error."
Senate Republican leader Mitch McConnell told reporters that he will be "proud to support it without delay".Senate Republican leader Mitch McConnell told reporters that he will be "proud to support it without delay".
With the chamber narrowly divided - 51 seats out of 100 are held by Democrats - and with 60 votes required to approve most bills, some combination of Democratic and Republican votes will be needed.With the chamber narrowly divided - 51 seats out of 100 are held by Democrats - and with 60 votes required to approve most bills, some combination of Democratic and Republican votes will be needed.
Some Republicans have threatened to stall the bill's consideration, however, and may call for amendments if Senate leaders permit. Some Republicans have threatened to stall the bill's consideration, however, and may call for amendments if Senate leaders permit. A few have said that they plan to vote against the bill.
All 100 senators need to agree to set up a final vote on the bill.
If any amendments are approved, the deal must head back to the House of Representatives for another vote - which would almost certainly push final approval past 5 June.If any amendments are approved, the deal must head back to the House of Representatives for another vote - which would almost certainly push final approval past 5 June.
When the House voted on the 99-page bill on Wednesday evening, 165 Democrats joined 149 Republicans in approving it, so the bill passed in that chamber by the required simple majority.When the House voted on the 99-page bill on Wednesday evening, 165 Democrats joined 149 Republicans in approving it, so the bill passed in that chamber by the required simple majority.
Watch: The debt ceiling explained - in under 90 secondsWatch: The debt ceiling explained - in under 90 seconds
Watch: The debt ceiling explained - in under 90 secondsWatch: The debt ceiling explained - in under 90 seconds
In a statement afterwards, President Biden thanked House Speaker Kevin McCarthy, saying the Republican had negotiated in good faith.In a statement afterwards, President Biden thanked House Speaker Kevin McCarthy, saying the Republican had negotiated in good faith.
"Neither side got everything it wanted," said the president. "That's the responsibility of governing.""Neither side got everything it wanted," said the president. "That's the responsibility of governing."
The agreement suspends the debt ceiling, the spending limit set by Congress which determines how much money the government can borrow, until 1 January 2025.The agreement suspends the debt ceiling, the spending limit set by Congress which determines how much money the government can borrow, until 1 January 2025.
The legislation will result in $1.5tn in savings over a decade, the independent Congressional Budget Office said on Tuesday.The legislation will result in $1.5tn in savings over a decade, the independent Congressional Budget Office said on Tuesday.
The contents of the bill have drawn objections from both hard-line Republicans and left-wing Democrats.The contents of the bill have drawn objections from both hard-line Republicans and left-wing Democrats.
Mr McCarthy framed the package as "the biggest cut and savings this Congress has ever voted for". But some conservative Republicans complained they had secured too few concessions in exchange for raising the debt limit.Mr McCarthy framed the package as "the biggest cut and savings this Congress has ever voted for". But some conservative Republicans complained they had secured too few concessions in exchange for raising the debt limit.
What Danes can teach the US about its debt crisisWhat Danes can teach the US about its debt crisis
Could a US debt default unleash global chaos?Could a US debt default unleash global chaos?
Left-wing Senator Bernie Sanders came out against the bill on Wednesday, saying he cannot "in good conscience" support it - but he told CNN he would not delay its passage.Left-wing Senator Bernie Sanders came out against the bill on Wednesday, saying he cannot "in good conscience" support it - but he told CNN he would not delay its passage.
The last time the US came this close to overshooting its debt ceiling, in 2011, the credit agency Standard & Poor's downgraded the country's rating, a move that has yet to be reversed.The last time the US came this close to overshooting its debt ceiling, in 2011, the credit agency Standard & Poor's downgraded the country's rating, a move that has yet to be reversed.
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United States SenateUnited States Senate
Joe BidenJoe Biden