US President Joe Biden addresses the nation on avoiding default and the Bipartisan Budget Agreement, in the Oval Office of the White House in Washington, DC, June 2, 2023.
Pool | Via Reuters
WASHINGTON — President Joe Biden on Friday night gave his first address from the Oval Office to discuss a bill to raise the debt while limiting federal spending, calling it a “critical” deal. He plans to sign the bill on Saturday.
“Nobody got everything they wanted but the American people got what they needed. We avoided an economic crisis and an economic collapse,” Biden said.
The compromise debt ceiling bill passed the Senate by a 63-36 margin Thursday night, garnering enough support from both parties to pass the chamber’s 60-vote threshold to avoid a filibuster. On Wednesday, it moved to the House after nearly 72 hours, passing 314-117.
The deal has little time left: The Treasury Department estimates the federal government will run out of money by June 5 if the debt ceiling is not lifted.
“It’s important,” Biden said. “Crucial to all the progress we’ve made over the past few years is maintaining the full faith and credit of the United States and passing a budget that will continue to grow our economy and reflect our values as a nation.”
Without the agreement, federal obligations such as Social Security, Medicare and military salaries are not remitted. And failure to raise the debt ceiling would roil global financial markets and cause U.S. job losses
The bill comes after weeks of intense negotiations between Republican House Speaker Kevin McCarthy and the White House. The final deal gave conservatives some ideological policy gains in exchange for their votes to raise the debt ceiling after next year’s presidential election and in 2025.