Senate votes to raise debt ceiling by $2.5 trillion

The Senate voted to lift the federal debt ceiling by $2.5 trillion on Tuesday, clearing a key hurdle toward avoiding a U.S. default after months of discord on Capitol Hill. The vote was along party lines, 50-49.

Lawmakers expect the increase, which raises the debt ceiling to roughly $31.5 trillion, to last beyond the upcoming midterm elections and into 2023. Treasury Secretary Janet Yellen said lawmakers had until Wednesday to raise the debt ceiling or risk a potential default on U.S. obligations.

Earlier, Republicans agreed to a one-time exception to the filibuster, allowing the Democrats to pass the debt hike by a simple majority vote rather than meeting the 60-vote threshold.

“This is about paying debt accumulated by both parties, so I’m pleased Republicans and Democrats came together,” Senate Majority Leader Chuck Schumer, D-NY, said on the floor ahead of the vote.

The House is expected to sync up with the Senate in a vote on raising the debt limit that could occur as soon as Tuesday. From there, the bill will proceed to President Biden’s desk for final approval.

The Senate vote followed weeks of contentious negotiations between Schumer and Minority Leader Mitch McConnell, R-Ky. Many Republicans say Democrats should raise the debt ceiling without their help, arguing any increase will facilitate increased spending on social and climate programs the country can’t afford.