Senate dodges US debt disaster, voting to extend borrowing

By KEVIN FREKING, ALAN FRAM and ALEXANDRA JAFFE Associated Press

WASHINGTON (AP) — The Senate has dodged a U.S. debt disaster by approving legislation to lift the federal limit on new borrowing by nearly a half-trillion dollars.

The bill, likely to be approved by the House as well, should temporarily avert an unprecedented U.S. default that experts say would have devastated the economy and harmed millions of Americans.

Approved Thursday night by the Senate, it will extend the government’s authority to borrow into December. However, that will provide only a temporary reprieve. The same battle will be revived as Democrats argue before yearend with Republicans, who oppose long-term raising of the debt limit.