The U.S. debt limit is heading for an increase, as lawmakers in Washington acted Tuesday ahead of a key deadline to avoid an unprecedented default.
The Senate approved a bill raising the debt limit by $2.5 trillion, setting up a separate vote by the House that would send legislation to President Joe Biden for signature.
The increase in the debt limit punts the issue past the November 2022 midterm elections.
“The resolution we will vote on will provide for a raising of the debt limit to a level commensurate with funding necessary to get into 2023,” said Senate Majority Leader Chuck Schumer, a New York Democrat, before the vote.
Treasury Secretary Janet Yellen had urged Congress to raise the borrowing limit before Wednesday, saying she believed she would run out of room to avoid the first-ever U.S. default soon after.
Last week, Biden signed…