WASHINGTON (AP) 鈥� With just , President Joe Biden signed legislation on Saturday that lifts the , averting an on the federal government鈥檚 debt.
The White House announced the signing, done in private at the White House, in an emailed statement in which Biden thanked congressional leaders for their partnership.
The had warned that the country would start running short of cash to pay all of its bills on Monday, which would have sent shockwaves through the U.S. and global economies.
Republicans refused to raise the country鈥檚 borrowing limit unless Democrats agreed to cut spending, leading to a standoff that was not resolved until weeks of between the White House and , R-Calif.
The , passed by on Wednesday and the Senate on Thursday, suspends the debt limit until 2025 鈥� after the next presidential election 鈥� and restricts government spending. It gives lawmakers budget targets for the next two years in hopes of assuring fiscal stability as the political season heats up.
Raising the nation鈥檚 debt limit, now at $31.4 trillion, will ensure that the government can borrow to pay debts already incurred.
鈥淧assing this budget agreement was critical. The stakes could not have been higher," on Friday evening. 鈥淣othing would have been more catastrophic,鈥� he said, than defaulting on the country's debt.
鈥淣o one got everything they wanted but the American people got what they needed,鈥� Biden said, highlighting the 鈥渃ompromise and consensus鈥� in the deal. 鈥淲e averted an economic crisis and an economic collapse.鈥�
Biden used the opportunity to itemize the achievements of his first term as he runs for reelection, including support for high-tech manufacturing, infrastructure investments and financial incentives for fighting climate change. He also highlighted ways he blunted Republican efforts to roll back his agenda and achieve deeper cuts.
鈥淲e鈥檙e cutting spending and bringing deficits down at the same time,鈥� Biden said. 鈥淲e're protecting important priorities from Social Security to Medicare to Medicaid to veterans to our transformational investments in infrastructure and clean energy.鈥�
Even as he pledged to continue working with Republicans, Biden also drew contrasts with the opposing party, particularly when it comes to raising taxes on the wealthy, something the Democratic president has sought.
It鈥檚 something he suggested may need to wait until a second term.
鈥淚鈥檓 going to be coming back,鈥� he said. 鈥淲ith your help, I鈥檓 going to win.鈥�
Biden's remarks were the most detailed comments from the Democratic president on the compromise he and his staff negotiated. He largely remained quiet publicly during the high-stakes talks, a decision that frustrated some members of his party but was intended to give space for both sides to reach a deal and for lawmakers to vote it to his desk.
Biden praised McCarthy and his negotiators for operating in good faith, and all congressional leaders for ensuring swift passage of the legislation. 鈥淭hey acted responsibly, and put the good of the country ahead of politics,鈥� he said.
Overall, the 99-page bill restricts spending for the next two years and changes some policies, including imposing new work requirements for older Americans receiving food aid and greenlighting an Appalachian natural gas pipeline that many Democrats oppose. Some environmental rules were modified for infrastructure and energy projects 鈥� a move long sought by moderates in Congress.
The Congressional Budget Office estimates it could actually , with the elimination of for veterans, homeless people and young people leaving foster care.
The legislation also bolsters funds for defense and veterans, cuts back some new money for the Internal Revenue Service and rejects Biden鈥檚 call to roll back Trump-era tax breaks on corporations and the wealthy to help cover the nation鈥檚 deficits. But the White House said the IRS' plans to step up enforcement of tax laws for high-income earners and corporations would continue.
The agreement imposes an automatic overall 1% cut to spending programs if Congress fails to approve its annual spending bills 鈥� a measure designed to pressure lawmakers of both parties to reach consensus before the end of the fiscal year in September.
In both chambers, more Democrats backed the legislation than Republicans, but both parties were critical to its passage. In the Senate the tally was 63-36 including 46 Democrats and independents and 17 Republicans in favor, 31 Republicans along with four Democrats and one independent who caucuses with the Democrats opposed.
The vote in the House was 314-117.
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AP Congressional Correspondent Lisa Mascaro contributed to this report.
Chris Megerian, The Associated Press
