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US Congress agrees to raise debt limit by $2.5T, avoiding first default in history

By December 16, 2021 1200
US Congress agrees to raise debt limit by $2.5T, avoiding first default in history

US Congress agreed early Wednesday to raise the country's debt limit by $2.5 trillion, officially avoiding the first American government default in history.

After the Senate passed the measure in a 50-49 vote, the House of Representatives approved the legislation in a 221-209 vote, sending the bill to President Joe Biden's desk for signature.

The debt limit, which is now around $31.4 trillion, will finance the government’s debt obligations through 2023 and includes the 2022 mid-term elections, according to Senate Majority Leader Chuck Schumer.

The measure came less than one day before the federal government was expected to reach its debt ceiling -- Dec. 15 -- a date Treasury Secretary Janet Yellen warned lawmakers repeatedly in the last few months./aa

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