UPDATE - US Senate passes debt ceiling bill, sends it to Biden to sign into law

ADDS REMARKS FROM PRESIDENT BIDEN

By Betul Yuruk

NEW YORK (AA) - The US Senate passed a bill to suspend the debt ceiling late Thursday, averting a first-ever catastrophic default on the nation’s debt before a June 5 deadline.

The Senate voted 63-36 to approve the legislation.

The bill, which suspends the $31.4 trillion cap on the federal government's borrowing limit through January 2025, can now go to President Joe Biden to be signed into law.

The debt limit was hit in January, but the Treasury Department has taken steps to ensure that the US continues to pay its bills.

''Tonight, Senators from both parties voted to protect the hard-earned economic progress we have made and prevent a first-ever default by the United States,'' Biden said after the vote.

''Together, they demonstrated once more that America is a nation that pays its bills and meets its obligations—and always will be.''

He thanked Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell for quickly passing the bill.

He said the bipartisan agreement is a big win for the economy and the American people and a critical step forward.