Senators reached a deal to expedite passage late Thursday of a debt-ceiling agreement forged by President Joe Biden and House Speaker Kevin McCarthy as a June 5 deadline for a destabilizing US default approaches.

The agreement allows senators to offer 11 amendments to the bill, all of which are expected to fail but nonetheless force brief debate and a vote. It also includes a statement from Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell committing to an emergency defense spending bill demanded by GOP hawks.

Several senators, including Republicans Mike Lee of Utah and Lindsey Graham of South Carolina, had threatened to use the chamber’s arcane rules to delay a vote past the June 5 deadline unless they were given time to debate their amendments.

The legislation would impose restraints on government spending through the 2024 election and suspend the legal debt limit until January 2025.

Investors have largely judged the risk of a US default as resolved and are shifting attention to other uncertainties, such as Federal Reserve policy. The S&P 500 rose Thursday, while Treasury yields were down.

The House passed the deal on a 314-117 bipartisan vote late Wednesday night.

--With assistance from Jarrell Dillard and Zach C. Cohen.

Author: Erik Wasson and Steven T. Dennis