Update (1745ET): The US Senate has voted to increase the country's debt ceiling by $2.5 trillion, enough to fund operations through early 2023.
Passed by a 50-49 party line vote, the plan is to send it to President Biden's desk for his signature.
"Responsible governing has won on this exceedingly important issue," said Sen. Majority Leader Chuck Schumer of the increase in borrowing. "The American people can breathe easy and rest assured there will not be a default," he added.
The current federal debt is $28.9 trillion, and Treasury Secretary Janet Yellenhas warned that the government could have difficulty meeting its obligations after Dec. 15, though outside analysts have said the government has a bit more time.
The Senate acted as a result of legislation Congress approved last week establishing a one-time process to fast-track the measure by shielding it from the threat of a GOP filibuster in the 50-50 Senate and allowing it to pass with a simple majority. -Bloomberg
Congress last raised the debt ceiling in October with a $480 billion band-aid which followed weeks of partisan jousting.
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Senate Democrats are seeking to increase the debt limit by $2.5 trillion, which would fund the government through early 2023, according to a Joint Resolution released on Tuesday.
The new figure comes as Congressional Democrats plan on a Tuesday vote to raise the debt ceiling, just one day before Treasury Secretary Janet Yellen's prediction that US could default as soon as Dec. 15.
The effort will begin in the Senate, where Majority Leader Chuck Schumer, D-N.Y., is expected to advance a debt-limit resolution early Tuesday afternoon. That procedural green light will mark the start of 10 hours of Senate debate allowed for under the resolution, split between the two parties.
Schumer said Tuesday morning that Democrats will likely yield some portion of their debate time to speed up the process. While a vote could slip to the evening hours if Republicans use all their allotted time, the chamber’s Democrats are expected to pass a debt-ceiling increase before the end of the day. -CNBC
Once through the Senate, the bill will then go to the House, where Democrats are expected to approve it and send it to President Biden's desk later in the day, or early Wednesday.
According to Schumer, the Democrats will raise the debt limit "to a level commensurate with funding necessary to get into 2023.
Democrats own the increase after 14 Republicans joined every Democrat in the Senate to allow a one-time simple majority vote to lift the debt ceiling without the 60 votes typically required to break a filibuster.