Senate Approves Debt Increase

The Senate has passed a House-approved bill to raise the debt ceiling and cap government spending for two years, just days before the U.S. risked its first-ever sovereign debt default. President Joe Biden is expected to sign the bill, which received bipartisan support. While most Senate Republicans voted against it, 17 GOP senators supported the bill, along with the majority of Democrats. The bill includes provisions that conservatives fought for, such as new work requirements for federal aid and a two-year government spending cap. The Treasury Department's June 5 deadline for raising the debt limit prompted rapid voting and deal-making in the Senate. The resolution to the debt ceiling crisis was welcomed by Treasury Secretary Janet Yellen and Moody's, and market analysts expressed relief as the risk of a U.S. debt default diminished.