The debt ceiling bill that Congress approved to avoid a possible default in the world’s biggest economy became law on Saturday when President Joe Biden signed it. The Fiscal Responsibility Act of 2023 allows the government to borrow more and pay its bills on time.

This happened after the US Senate passed a bill on Thursday, with support from both parties and President Joe Biden, to increase the government’s debt limit of $31.4 trillion.

This important step prevented a possible default for the first time. The Senate voted 63-36 for the bill, which the House of Representatives had already approved on Wednesday.

Democrats and Republicans had argued for months before agreeing on the bill. The Treasury had warned that the debt limit had to be raised by Monday or the nation would default on its $31 trillion debt.

Senate Majority Leader Chuck Schumer said, “We are not defaulting tonight.” President Biden praised Congress for acting quickly and said the agreement between both parties was a big win for the people and the economy.

President Biden worked with House Speaker Kevin McCarthy on the bill. Senate Republican Leader Mitch McConnell hinted at more budget fights. He said in a statement that Senate Republicans will keep trying to stop what they see as “wasteful” spending by the Democrats in Washington.