Debt Ceiling Deal Passes House But Fight Not Yet Over

The battle over the debt ceiling has passed another hurdle as the Debt Limit Bill overwhelmingly passed the House of Representatives. The fight is not yet over, though, as it heads to the Senate next.

It was a bipartisan coalition that approved the bill and thus moved one step closer to averting a national economic crisis. This is despite many other congressmen on both sides of the aisle voicing their disapproval of the bill.

The bill was a result of weeks of tense arguments and deals between the Biden administration and House Republicans led by House Speaker Kevin McCarthy. It would suspend the debt ceiling and set federal spending limits, but more importantly, prevent the United States from defaulting and running out of money.

The New York Times pointed out that while both far-right and hard-left lawmakers did not approve of the bill, it was mostly the Democrats who helped overwhelmingly pass the bill and helped prevent an economic meltdown. A massive majority of 165 Democrats voted yes to the bill, while only 46 opposed it. Meanwhile, 149 Republicans voted yes, but 71 Republican hardliners voted no.

The high number of Republicans who voted no is considered a blow to the already tenuous leadership of Kevin McCarthy, who barely became House Speaker after several days of tense negotiations with far-right Republicans. The fact that more Democrats voted for the bill also dampened his achievement.

"Once again, House Democrats to the rescue to avoid a dangerous default," said House Democratic leader Hakeem Jeffries before lambasting the MAGA Republicans who did not vote for the bill. "What does that say about this extreme MAGA Republican majority?" he added.

Will the Debt Ceiling Bill Pass the Senate?

As the deal passes the House overwhelmingly, it still has one more hurdle, and that is the US Senate. According to the Associated Press, Democratic Majority Leader Chuck Schumer and Senate Republican minority leader Mitch McConnell are now working to pass the bill before the week ends.

Schumer stated that there is" no room for error" as some senators are seeking amendments to the package. However, it was pointed out that with the June 5 deadline looming, these changes are deemed unlikely.

Should the Senate pass the bill quickly, checks would continue to go out to Social Security recipients, veterans, and others. It must arrive at President Joe Biden's table by Monday, or the United States will run out of money to pay its debts.

Several Democrats, such as Bernie Sanders, as well as a few Republicans, have said that they will not vote for the bill.

White House Explains What Would Happen If the Debt Ceiling Bill Does Not Pass

As the debt ceiling deadline draws nearer, the White House explained in a report on its official website what might happen should the US default on its debts. Simply put, saying it would be bad is an understatement.

A breach of the debt ceiling would "likely cause severe damage to the US economy," and the country would lose all its gains made in the last few years, according to the report. Currently, the unemployment rate is near a 50-year low, and a historic default might reverse that as it might affect customer spending.

A debt ceiling breach would also make the government unable to enact counter-cyclical measures in a breach-induced recession. This would limit its policy options and help businesses and households go through this recession.

READ MORE: Joe Biden Family Probe: House Republicans Find No Evidence of Wrongdoing

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Written by: Rick Martin

WATCH: Debt ceiling bill goes to full vote in House of Representatives - CBS New York