The US House of Representatives on Wednesday (May 31) voted in favour of raising the country’s debt ceiling. The passage of the legislation has brought the US one step closer to eliminating debt default, something that not only will be bad for the US but also for the health of world economy. The deadline set by the US Treasury is just five days away.
The lower chamber of US Congress was deeply divided. The deal got 314 votes in favour and 117 against. The legislation will now be sent to US Senate for its approval. It is expected that the Senate will approve the deal before end of the week.
The bill suspends the $31.4 trillion debt ceiling. It got support from both Democrats and Republicans. But the support had to overcome opposition from hardline conservatives.
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The House voted with overwhelming bipartisan support as 149 Republicans joined 165 Democrats to pass the debt ceiling legislation negotiated by Speaker Kevin McCarthy and President Joe Biden.
The bill would extend the debt limit for two years with a two-year budget agreement if signed into law. It is the culmination of months of political feud and weeks of frantic parleys between the two parties that finally broke a drawn-out stalemate on the issue.
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The US Congress must ensure the approved deal reaches President Joe Biden’s desk before Monday (June 5), when the federal government is expected to run out of money to pay its bills.
President Biden hails development
Shortly after approval from the House of Representatives, US President Joe Biden hailed the development. He described the passage as “a critical step” to prevent a devastating default. He praised both parties.
“Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery.I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement meets that test. I urge the Senate to pass it as quickly as possible so that I can sign it into law, and our country can continue building the strongest economy in the world,” he tweeted.
Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery.
I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement…
— President Biden (@POTUS) June 1, 2023
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