The Senate passed legislation Tuesday to raise the statutory debt limit by $2.5 trillion, and the House followed suit just after midnight Wednesday morning, sending it to President Biden for his signature.
Treasury Secretary Janet Yellen had set a Wednesday deadline for addressing the debt limit to ensure the nation doesn’t default on its debt. A first-ever default would have upended the markets, forced a scramble on current government spending and sent a negative signal to the rest of the world about the United States’ economic and political stability.
The amount by which Congress raised the debt limit is enough to cover current government borrowing into 2023, avoiding another showdown before the 2022 midterm elections.
Army National Guard photo by Sgt. Andrew Walker