The bipartisan agreement will now go to the US Senate for a vote before President Joe Biden can sign it into law. This is considered a procedural matter, because the Senate is controlled by the Democratic Party, and Mr. Biden is also a member of that party.
Capitol Hill. Photo: DPA
The vote is a critical step in preventing a default that would destabilize the U.S. and global economies . "This agreement is good news for the American people and the American economy ," President Joe Biden said in a statement.
The Fiscal Responsibility Act needs a simple majority to pass the House. The deal between Republicans and Democrats allows the government to borrow more and ensures the country does not default on its loans, which would send the U.S. and global economies into a tailspin.
Ahead of the vote, Mr Biden and Mr McCarthy appeared optimistic. The two politicians had drafted a compromise bill after weeks of negotiations.
Overall, the 99-page bill limits spending for the next two years, suspends the debt ceiling until January 2025 and changes policies, including new work requirements for older Americans receiving food aid and approval of the Appalachian natural gas pipeline that many Democrats oppose.
Senate Republican leader Mitch McConnell said he expects the debt ceiling bill to be voted on in the Senate as soon as Thursday. If passed, it would then be signed into law by President Joe Biden.
Trung Kien (according to DPA, DW)
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