Members of the US House of Representatives voted on a bill suspending the country’s debt limit. In order for the US to avoid insolvency, the bill must soon pass the Senate. “Today, the House took a critical step toward avoiding the first-ever bankruptcy and protecting our hard-won and historic economic recovery,” US President Joe Biden wrote. “Neither side got everything they wanted. That’s the responsibility,” he added.
The House of Representatives on Wednesday passed a bill suspending the debt limit until January 2025 and limiting budget spending in the next two budgets.
Behind the project, which is the result of a compromise between the US president Joe Biden and Republican leader, House Speaker Kevin McCarthy, 314 congressmen voted and 117 voted against.
Washington’s addiction to spending is both irresponsible and downright wrong. So let’s keep them. I’ll be honest, today’s bill doesn’t stop it, but this is the first time we’re starting to turn this ship around,” McCarthy said ahead of the vote.
The bill was adopted after sometimes dramatic negotiations in the face of the possible bankruptcy of the US and despite strong opposition from some congressmen of both parties.
Some of the most radical supporters of spending cuts among Republicans even threatened to remove McCarthy from office, but in the end the speaker managed to limit the rebellion in the party. Left-wing democrats, in turn, opposed social cuts and tightening of criteria for access to programs for the poorest families.
The act suspends the debt limit until January 2025 and freezes budget spending in the fiscal year 2024 – apart from defense spending – at the current year’s level. The agreement provides for an increase in these expenses by 1%. next year. According to the analysis, this will reduce it budget deficits by $1.5 trillion over 10 years.
Biden: a key step towards avoiding bankruptcy
“Today, the House took a crucial step toward avoiding the first-ever bankruptcy and protecting our hard-won and historic economic recovery,” Biden said in a statement.
“This budget agreement is a bipartisan compromise. Neither side got everything they wanted. That’s the responsibility,” he added, calling on the Senate to quickly pass the legislation.
Suspension of the debt ceiling, currently set at $31.4 trillion, is necessary to United States avoided bankruptcy. According to the Treasury Department, for this to happen, the bill must be signed by the president before June 5.
Main photo source: JIM LO SCALZO/PAP/EPA