The Senate Finance Committee approved a version of a debt relief package Thursday that would reduce the debt ceiling by $1.3 trillion and create a debt ceiling emergency fund.
The legislation passed by a vote of 21-11, with Sen. Lindsey Graham, R-S.C., as the lone Republican to vote against it.
The measure is expected to go to the Senate floor this week.
The bill, titled the Continuing Resolution for Fiscal Year 2017, also includes an increase in the federal debt limit.
It would reduce by $150 billion the amount of spending on Medicare, Medicaid and Social Security by $500 billion and by $2.1 trillion the amount spent on veterans’ benefits by $300 billion.
The measure would also cut taxes by $350 billion and increase the debt limit by $250 billion.
The legislation also includes a debt restructuring provision, which would require debtors to pay back their debt by reducing their debt service obligations.
The bill would also impose a 2.5 percent surtax on the value of all stocks, bonds, real estate and mutual funds held by individuals and corporations.
The resolution would also authorize $15 billion for an additional fiscal year to fund the government through October.
The money would be used to pay down the debt and cover spending reductions in other areas, including the federal unemployment insurance program.
The White House said President Donald Trump and Senate Majority Leader Mitch McConnell, R. Ky., will unveil the final legislation Friday.
The House approved the bill last week and has not voted on it.
In the Senate, Republican Sen. Susan Collins of Maine and Democratic Sen. Sheldon Whitehouse of Rhode Island have both voted against the bill.
Collins, who chairs the Appropriations subcommittee that oversees the debt, told reporters she opposes the measure because she does not think it provides enough relief to the American people.
Whitehouse, who is the majority whip, said the bill does not offer enough relief for the American economy and does not address the issues of unemployment, debt and government waste.
He also questioned the need for additional funds.