With only days before a projected U.S. default, the Senate in a 63-36 vote on Thursday passed a bill to suspend the debt ceiling, sending the measure to President Joe Biden for signature.

The Fiscal Responsibility Act of 2023 will suspend the debt ceiling until January 2025 and cap federal spending for at least two years. The Congressional Budget Office on Tuesday estimated the bill will cut the federal deficit by $1.5 trillion over the next decade.

The measure was passed in the House late Wednesday in a 314-117 vote.

After months of posturing and weeks of negotiations between the White House and House Republicans, the bill’s passage comes with only hours to spare before the projected X-date — when the U.S. will no longer be able to meet all its obligations in full and on time — of June 5.

The debt limit or debt ceiling — the terms are used interchangeably — is a cap on the money the U.S. government can borrow to pay its bills. It does not authorize any new spending, but it allows the Treasury Department to finance the existing legal obligations already approved by Congress. The debt limit was last raised in December 2021 and stands at $31.4 trillion.

In a statement after the vote, Mr. Biden thanked senators from both parties and called the agreement a “big win for our economy and the American people.”

Mr. Biden added: “Our work is far from finished, but this agreement is a critical step forward, and a reminder of what’s possible when we act in the best interests of our country. I look forward to signing this bill into law as soon as possible and addressing the American people directly” on Friday.

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