- The bill has 11 amendments
- The Senate majority leader rates it as a “victory for Democrats.”
- The deal includes modest cuts in non-military spending and federal deductions
On Wednesday, May 31, the draft Biden-McCarthy “debt” deal passed by voice vote in the House. Last night, June 1, the Senate approved it, allaying recent fears of a possible U.S. default.
The vote ended by a margin of 63 to 36. Senate passed and approved a two-year agreement to raise the national debt limit with 11 amendments. Now Joe Biden must sign the bill.
“America can breathe a sigh of relief.. We avoided default. Its consequences would be catastrophic,” NBC News quoted Senate Majority Leader Chuck Schumer as saying.
Lawmakers stressed, the bill does not authorize authorities to make new spending. It is a necessary measure so that the states can pay off existing debts.
The deal includes a number of “concessions” to Republicans, namely:
- moderate cuts to all non-military spending;
- reducing $1.4 billion in IRS (tax) funding;
- returning $28 billion in unspent Covid-19 relief funds to the Treasury;
- easing permitting for energy projects, not just “green,” which is notable.
Medicare, Medicaid, and social initiatives remain unchanged. The question of scandalous amendments to the tax law on capital gains in cryptocurrency remains open.