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Off to the Senate! – Debt Ceiling Bill Clears House Vote as Deadline and Default Loom – Possible Senate Vote Tonight (VIDEO)

One Vote Down, One to Go, as Debt Ceiling Bill Easily Passes House Vote Wednesday Evening

With the first of two main hurdles out of the way, the legislation is headed to the Senate for a crucial must-pass vote before the June 5th deadline to prevent the U.S. from defaulting on its debt and throwing the global financial markets into chaos.

In what some were expecting to be a tight vote, the debt ceiling bill easily cleared the U.S. House of Representatives in a 314-117 vote. Last night’s overwhelming win in the lower chamber has many breathing a sigh of relief, but the work isn’t over. The debt ceiling legislation, aka the Fiscal Responsibility Act of 2023, is off to the Senate for the final make-or-break vote. If approved by the Senate, the bill will head to President Joe Biden’s desk at the White House for his signature, officially signing it into law.

Currently, the U.S. debt ceiling is approximately $31.4 trillion, which, believe it or not, was actually maxed out back in January. It was only a result of the Treasury Department using what it called “extraordinary measures” that the federal government had the necessary funds to continue operation while a solution was worked out.

Source: Today YouTube

With the United States set to begin defaulting on its financial obligations on June 5, 2023, time is of the essence. As a result, the Senate immediately got to work fast-tracking the bill and is already debating the measure on the Senate floor. However, the potential for Senators to offer up amendments to the bill could throw a wrench in the upper chamber’s plans to hold a speedy vote before the deadline.

For example, Democrat Senator Tim Kaine (D-VA) has already offered an amendment seeking to remove approval for the Mountain Valley Pipeline, which many view as controversial, from the legislation.

In addition, Republican Senator Rand Paul (R-KY) slams the debt limit bill and offers an amendment that would drastically overhaul the agreement as passed in the House and negotiated by President Biden and Speaker McCarthy.

Source: Forbes Breaking News YouTube

Also Read: VIDEO: U.S. Debt Ceiling Deal Set For Tight House Vote Tonight – Watch Live

GOP war hawks, led by Senator Lindsey Graham (R-S.C.), are currently protesting the bill’s proposed 1% across-the-board spending cut as it would decrease the country’s military defence budget. The group also took issue with the fact that defence funds for Ukraine were not earmarked. It appears the goal of the GOP protest is to put pressure on Senate leaders so that they agree to move a decision on the funding measure for the Ukraine war until later in the year.

In a comment directed at House members, accusing them of undercutting the U.S. military during a period of increased tension with China and Russia, Senator Graham stated:

“To my House colleagues, I can’t believe you did this. This budget is a win for China.”

Also, as reported by The Hill’s Zack Budryk:

“Sens. Bernie Sanders (I-Vt.) and Ed Markey (D-Mass.) have already announced they will vote against the bill, specifically citing its provisions on the pipeline and fossil fuel development.”

As you can see, a successful Senate vote before the June 5th deadline isn’t a slam dunk. With the clock ticking, there’s still plenty of work to do and wrenches to dodge if the United States wants to avoid defaulting on its debt for the first time in the nation’s history. A default would not only wreak havoc on the U.S. economy but the entire world’s economy. With so much on the line, let’s hope the Senate comes together and gets this done ASAP.

On a positive note, Senate Majority Leader Chuck Schumer (D-N.Y.) reportedly told fellow colleagues this morning that he intends to keep the Senate in session until the bill is passed. No matter how long it takes.

Schumer also warned that the deadline, which would see the U.S. default, is “less than four days away.”

In my opinion, the consequences of a U.S. default are just too massive for the Senate not to pass the bill. Complex amendments, such as the one from Rand Paul, are likely just the Senator posturing to his base and likely won’t put up any serious roadblocks. With a potential historic default looming, I think the Senate, led by Majority Leader Schumer, should get this done ahead of the deadline without any serious delays.

Update 7:30 PM EST: Senate Majority Leader Chuck Schumer (D-N.Y.) spoke briefly during the ongoing Senate debate and indicated that it was his intention to pass the bill tonight and send it directly to the President’s desk.

As the Senate debate continues, watch live via the video below:

Source: CBS News YouTube

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Ryan Troup

Ryan Troup is the Editor in Chief of Wealthy VC and TCI. Ryan has 15+ years of investing experience. Twitter | Email

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