The US House of Representatives has voted to raise the federal debt limit just five days ahead of the Treasury’s deadline. The agreement, negotiated between President Joe Biden and House Speaker Kevin McCarthy, paves the way for additional borrowing to prevent the government from running out of money, as reported by Fox News.
Both parties in Congress supported the agreement, which includes a reduction in nondefense discretionary spending over the next two years, addressing the GOP’s demand. The package was approved by a vote of 314 to 117, with Democrats supporting it by a margin of 165-46 and Republicans by a margin of 149-71. The final agreement suspends the debt ceiling without a limitation until January 1, 2025.
Former House Speaker Nancy Pelosi, while acknowledging the necessity to avoid default, called the bill “objectionable” due to its implications. Treasury Secretary Janet Yellen has warned that failing to increase or suspend the debt ceiling by Monday, June 5, would leave the US government unable to meet its financial obligations.
By raising the federal debt limit, the House of Representatives has taken a crucial step to ensure the government’s ability to cover ongoing expenses and avoid a potential default.
.
