NEWS | House Advances Debt Ceiling Bill to Senate

Written by Chana Elgin | Jun 1, 2023 1:15:00 PM

Updated: Jun 2, 2023

Senators have just four days to consent to, debate, and pass the bill that raises the debt limit through early 2025.

UPDATE | Thursday night, after agreeing to limit time and amendments for debate and changes, the Senate advanced H.R. 3746 for signature into law by the President.

On Wednesday night, the House passed H.R. 3746, the Fiscal Responsibility Act of 2023, which raises the debt limit until Jan. 2025.

Among its other provisions, the bill limits spending increases for discretionary programs (aside from Defense and Veterans), scales back the big funding increase to the IRS, and extends the debt limit for two more years.

Passing with support from more Democrats than Republicans, H.R. 3746 advanced by a full floor vote of 314-117, just days ahead of the default deadline. In total, 71 Republicans and 46 Democrats voted against the bill.

Moving now to the north end of the Capitol, Senate Majority Leader Schumer (D - N.Y.) began the procedural process that will allow Senators to pass the legislation as soon as possible. Depending on whether all Senators agree to move forward, the measure could take several days to get through the deliberative body.

Should the Senate be unable to consent to a time agreement that limits debate and Members’ abilities to submit amendments or object to terms, the Treasury Department said it will no longer be able to pay the nation’s outstanding financial obligations in full and on time beyond June 5. This is a scenario financial experts warn could trigger a global economic catastrophe.

Despite several Senate Republicans and Democrats already saying they will oppose the bill, once the Senate passes the measure, it can be sent to President Biden to be signed into law, where the threat of default can be tabled until after the 2024 general elections.

For some context outside of Capitol Hill, specter of a U.S. default would uniquely harm small businesses in two key ways: a major credit disruption and subsequent inability to grow or even stay afloat; and thousands of small businesses who do business with the federal government will surely be at the top of the list of people the federal government will be unable to pay.

Please take a moment to urge your Members of Congress to proceed pragmatically and ensure that politics doesn’t create an insurmountable hurdle for America’s small businesses, and watch the discussion on the impacts of the threat to small business of the federal government exceeding the debt ceiling with NSBA President and CEO Todd McCracken and our financial expert Board Member Marilyn Lund.

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