2023-06-01 01:31:53
The U.S. House of Representatives successfully passed the bipartisan agreement on the debt ceiling bill on Thursday (5/31), and it will be sent to the Senate for a vote. As extremists from both parties still voted firmly against it, the market once worried that Congress would fail to pass the bill, and the U.S. government might default on its debt on June 5, triggering a global financial turmoil.
According to the current vote counting progress, there are more than 300 votes in favor, far exceeding the threshold of 218 seats.
The bipartisan seats in the current House of Representatives are 222 Republicans and 213 Democrats. A procedural vote on whether to debate and vote on the bill earlier Thursday passed with 241 votes in favor and 187 against. Among them, 52 Democrats voted in favor and 29 Republicans voted against. After a debate on the bill at 7:15 p.m. local time, a vote was held at 8:30 p.m.
Both European and US stocks closed down on the 31st as extreme lawmakers from both parties opposed parts of the bill, triggering market concerns.
Republican House Speaker Kevin McCarthy, however, expressed optimism that the bill “will become law.” Whether the debt limit bill can pass the House of Representatives is also related to whether McCarthy can keep the Speaker.
The U.S. Treasury Department recently estimated that the federal government may run out of available cash as early as June 5, which may trigger a default on its debt and trigger a global financial turmoil.
On Sunday (5/28), McCarthy and President Biden reached an agreement to increase the debt ceiling. The two sides agreed to freeze the budget for the new fiscal year starting in October this year, and maintain the national debt at the current $31.4 trillion until 2025. The next year’s budget Spending also increased by just 1%.
The agreement also includes an increase in defense spending requested by the Republican Party. The new year’s budget will rise from the current $800 billion to $885 billion, so some non-military spending must also be cut.
However, the agreement accepts the Republican Party’s request that food aid for low-income families will begin to require recipients to work, and by 2030, recipients under the age of 54 will be required to work to receive food stamps. Some 750,000 people are estimated to be ineligible for food stamps because of the new rules, which members of the Democratic progressive wing of the Congressional Progressive Caucus are staunchly opposed to.
The ultra-conservative House Freedom Caucus (House Freedom Caucus) of the Republican Party also firmly opposed the bill, arguing that more conditions should be included, including limiting federal government spending for up to 10 years and cutting clean energy taxes.
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