US House of Representatives approves bill to raise debt ceiling

The House of Representatives of the US Congress supported a bill to raise the national debt ceiling. About it informs Reuters.

The initiative was supported by 314 congressmen, against – 117, including 71 Republicans and 46 Democrats. After approval by the House of Representatives, the bill will be sent to the US Senate, which must take action and submit the document for signature to US President Joe Biden no later than June 5, when the authorities are expected to run out of funds to service the public debt, the agency notes.

Biden welcomed the passage of the bill, noting that it is “good news for the American people and the American economy.” The American leader also addressed the Senate and called for approval of the initiative “as soon as possible.” Biden saw the bill as a bipartisan compromise, adding that “neither side got everything it wanted.”

May 28 Speaker of the US House of Representatives Republican Kevin McCarthy announced about reaching an agreement in principle with the White House to prevent a sovereign default. The text of the agreement was published on 29 May.

On May 7, US Treasury Secretary Janet Yellen warned that the US could face a default in early June if the country does not pass a bill to raise the national debt ceiling. Later, May 27, Yellen in a letter to Congress statedthat the Treasury may not be able to service obligations in full if Congress does not expand borrowing limits by June 5.

Biden previously ruled out the possibility of a default and warnedthat in such a scenario, the consequences would be “catastrophic”, and the US economy would fall “into a serious recession.” According to him wordsthe US default could result in problems not only for the American economy, but for the whole world.

This is not the first time the US has reached the national debt limit. In December 2021, the debt ceiling was raised by $2.5 trillion to $31.4 trillion.