CHICOPEE, Mass. (WWLP) – President Biden has signed a bill that will prevent a federal debt default through 2025, but it came with some add-ons that ruffled feathers on both sides of the aisle.
A sigh of relief on capitol hill Thursday night, as senators approving the Fiscal Responsibility Act just before midnight, handing the bill over to President Biden just three days before the federal government defaulted on its debts. Representative Richard Neal stating, “The idea that America would default on its debt. What this would have done to international markets, social security and veterans benefits what this would have done to the dollar as the international currency of mark.”
The senate passing an almost identical bill as they received from the house with a couple of add-ons to get it across the finish line with house republicans. Those changes did include caps on non-military and military spending groups, at different rates.
Plus, federal assistance work requirements, a challenge in environmental project reviews, and a definitive end to the student loan repayment holiday. Those are set to play out over the next few years, some expiring sooner than others.
Neal adding, “Well I understand how fungible these additions are going to be because part of it is based on the reality of where we find ourselves. It’s unlikely that some of these caps will stay around. Republicans are going to argue next year there isn’t enough for military spending. That’s very different than what they argued two nights ago.”
President Biden plans to address the nation Friday night at 7 p.m.
