US Debt Ceiling Bill
The House of Representatives has passed the Debt ceiling bill on Wednesday, 31st may 2023, and it now heads to the Senate.
Also known as the debt limit, this Debt ceiling bill limits the total amount of money the government can borrow to pay its bills.
This includes paying for federal employees, the military, Social Security and Medicare, as well as interest on the national debt and tax refunds.
Every so often, US Congress votes to raise or suspend the ceiling so it can borrow more.
The cap currently stands at roughly $31.4tn (£25.2tn). That limit was breached in January, but the Treasury Department used “extraordinary measures” to provide the government with more cash while it figured out what to do.
Historically, it’s a formality for Congress to raise the limit as needed, but in recent years, as the parties have become more polarised, they can’t seem to agree on the terms.
Treasury Secretary Janet Yellen has warned that without more borrowing, the US will not have enough money to meet all of its financial obligations as soon as 5 June.
Highlights of US Debt Ceiling Bill / Debt Ceiling Deal
Here are the highlights from the package, with analysis by BBC North America correspondent Nomia Iqbal.
- Debt ceiling suspended until 2025
- Caps on spending, but not defence
- Unspent Covid funds returned
- Welfare tinkered with, but no overhaul
- Funds to enforce tax rules on wealthy Americans
- Easier to get energy project permits
- No Student loan relief
- No new taxes
- Unscathed Inflation Reduction Act’s clean energy and climate provisions
Download the complete PDF of US Debt Ceiling Bill / Debt Ceiling Deal using the download link below.
Source – BBC News
