The nation’s debt limit was raised $2.5 trillion last week to give the federal government enough borrowing power to pay its bills through the midterm elections in 2022 and into 2023. The Senate and House voted along party lines to send the measure to President Biden for signature. The debt limit is for money borrowed to pay for budget items that have already been passed by Congress.

If the debt limit weren’t raised in time and the Treasury Department ran out of cash, the government would have to prioritize which financial obligations to meet, putting federal salaries at risk of not being paid on time. The debt limit deal was signed just before December 15, the date Treasury officials believed the government would begin to default on its debt.

Congress was able to act just before the deadline, thanks to a bipartisan truce reached in the Senate two weeks ago, between Senate Majority Leader Chuck Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.). “The American people can breathe easy and rest assured there will not be a default,” said Schumer.

Now that the debt ceiling is raised through 2023 and the continuing resolution (CR) funds the federal government through February 18, 2022, Congress must deal with fiscal year 2022 appropriation bill negotiations and other legislative priorities during the second session of the 117th Congress. Two of these priorities include a scaled back Build Back Better Act (social spending and a climate package) and voting rights.