President Joe Biden signed legislation on Saturday that suspends the federal government’s $31.4 trillion debt ceiling, preventing a first-ever default.
The law was passed by the House of Representatives and the Senate this week after contentious discussions between Biden and House Speaker Kevin McCarthy.
The Treasury Department had warned that if Congress did not act by June 5, it would be unable to pay all of its payments.
Biden signed the law at the White House a day after touting it as a bipartisan achievement in his inaugural Oval Office address to the country.
“Thank you to Speaker McCarthy, Leader Jeffries, Leader Schumer, and Leader McConnell for their partnership,” the White House said in a statement announcing the bill’s signing, naming the House and Senate Democratic and Republican leaders.
“It was critical to reach an agreement, and it’s very good news for the American people,” Biden told reporters on Friday. “Nobody got everything they want. However, the American people received what they required.”
The law was approved by a vote of 314 to 117 in the Republican-controlled House and 63 to 36 in the Democratic-controlled Senate.
Despite the arrangement that will allow the country to pay its obligations, Fitch Ratings stated on Friday that the United States’ “AAA” credit rating would remain under review.
