Senate launches late-night votes to stave off US default, wrap up Biden-McCarthy debt ceiling deal

WASHINGTON (AP) — Rushing to prevent a U.S. debt default, the Senate was working late into Thursday night pushing toward a vote that would give final passage to a debt ceiling and budget cuts package and send it to President Joe Biden's desk to become law before the fast-approaching deadline.

Senators were steadily dispatching a list of proposed amendments to the package Biden negotiated with Speaker Kevin McCarthy, though none had been expected to be approved or change the overall deal. They were nearing a final vote as midnight approached.

Senate Majority Leader Chuck Schumer announced a late-night floor schedule, imploring his colleagues: "Let's finish the job."

Passage in the Senate will require cooperation between Democrats and Republicans, much the way the narrowly divided House was able to approve the compromise late Wednesday night. Fast action is vital if Washington is to meet next Monday's deadline, when Treasury has said the U.S. will start running short of cash to pay its bills, risking a devastating default.

Having remained largely on the sidelines during much of the Biden-McCarthy negotiations, several senators were insisting on debate over their ideas to reshape the package. Conservative Republican senators proposed amendments including to further cut spending, while a Democrat sought to remove a controversial natural gas pipeline from the package.

Defense hawks complained that military spending, though boosted in the deal, was not increased enough — particularly as they eye supplemental spending that will be needed this summer to support Ukraine in the war against Russia.

“We need safety and security,” said Sen. Lindsey Graham, R-S.C. “To my House colleagues, I can’t believe you did this.”

But making any changes at this stage seemed unlikely, and even opponents of the final deal said they would not hold it up.

Instead, senators concerned about the level of military spending secured an agreement from Schumer, which he read on the floor, stating that the debt ceiling deal “does nothing” to limit the Senate’s ability to approve other emergency supplemental funds for national security, including aid to Ukraine, or other national interests.

After the House overwhelmingly approved the bill Wednesday, Senate Republican leader Mitch McConnell signaled he too wanted to waste no time ensuring its passage.

Touting the budget cuts in the deal, McConnell said Thursday, “The Senate has a chance to make that important progress a reality.”

The hard-fought compromise pleased few in its entirety, but lawmakers assessed it was better than the alternative — economic upheaval at home and abroad if Congress failed to act. Tensions had run high in the House as hard-right Republicans refused the deal. But Biden and McCarthy assembled a bipartisan coalition, with Democrats ensuring passage on a robust 314-117 vote.

“We did pretty dang good,” McCarthy, R-Calif., said afterward.

As for discontent from Republicans who said the spending restrictions did not go far enough, McCarthy said it was only a “first step."

Biden in a statement called the outcome “good news for the American people and the American economy.”

The White House immediately turned its attention to the Senate, its top staff phoning individual senators.

Overall, the 99-page bill restricts spending for the next two years, suspends the debt ceiling into January 2025 and changes some policies, including imposing new work requirements for older Americans receiving food aid and greenlighting an Appalachian natural gas line that many Democrats oppose.

It bolsters funds for defense and veterans, cuts back new money for Internal Revenue Service agents and rejects Biden's call to roll back Trump-era tax breaks on corporations and the wealthy to help cover the nation's deficits.

Raising the nation's debt limit, now $31.4 trillion, would ensure Treasury could borrow to pay already incurred U.S. debts.

For weeks negotiators labored late into the night to strike the deal with the White House, and for days McCarthy had worked to build support among skeptics.

The speaker faced a tough crowd, as conservatives from the hard-right House Freedom Caucus, cheered on by outside groups, lambasted the compromise as falling well short of the needed spending cuts. All told, 71 Republicans bucked the speaker to oppose the deal. Ominously, the conservatives warned of possibly trying to oust McCarthy over the issue.

Democrats also had complaints, decrying the new work requirements for older Americans, those 50-54, in the food aid program, the changes to the landmark National Environmental Policy Act and approval of the controversial Mountain Valley Pipeline natural gas project they argue is unhelpful in fighting climate change.

The energy pipeline is important to Sen. Joe Manchin, D-W.Va., and he defended the development running through his state, saying the country cannot run without the power of gas, coal, wind and all available energy sources.

But, offering an amendment to strip the pipeline from the package, Democratic Sen. Tim Kaine of Virginia said it would not be fair for Congress to step into a controversial project that he said would also course through his state and scoop up lands in Appalachia that have been in families for generations.

The nonpartisan Congressional Budget Office said the spending restrictions in the package would reduce deficits by $1.5 trillion over the decade, a top goal for the Republicans trying to curb the debt load.

In a surprise that complicated Republicans' support, however, the CBO said their drive to impose work requirements on older Americans receiving food stamps would end up boosting spending by $2.1 billion over the time period. That's because the final deal exempts veterans and homeless people, expanding the food stamp rolls by 78,000 people monthly, the CBO said.

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AP White House Correspondent Zeke Miller, AP writers Mary Clare Jalonick, Seung Min Kim and Jill Colvin and video journalist Nathan Ellgren contributed to this report.

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