US House Approves Debt Ceiling Bill to Combat Default

• The U.S. House of Representatives passed a bill to suspend the debt limit.
• The bill would extend the country’s debt ceiling until January 1, 2025.

Five days prior to Treasury’s deadline, the US House of Representatives overwhelmingly voted on Wednesday to boost the federal debt ceiling. With the majority of Democrats and Republicans voting in favor, the U.S. House of Representatives passed a bill to suspend the $31.4 trillion debt limit. Also, the bill would overcome opposition from staunch conservatives and prevent a catastrophic default.

According to the report, the debt ceiling deal was agreed upon by House Speaker Kevin McCarthy and President Joe Biden. This puts Congress on track to approve additional borrowing just days before it’s expected that the government will run out of money to pay its bills due to the fear of a recession. 

Will the Bill Save the Country?

The Republican-controlled House approved sending the bill to the Senate after receiving an enormous majority vote of 314 to 117. The chamber has until Monday to pass the US debt ceiling bill and deliver it to President Joe Biden. The bill would extend the nation’s debt limit through January 1, 2025.

The bill also fulfilled the GOP demand to reduce nondefense discretionary spending over the next two years. According to the nonpartisan Congressional Budget Office, the proposed spending caps for 2024 and 2025 would reduce anticipated federal budget deficits by nearly $1.5 trillion over the next decade. 

Furthermore, while US lawmakers raced to avoid major bankruptcy and stabilize the nation’s economy, the BRICS countries announced that they would introduce a new currency used for international trade to challenge the dominance of the US dollar.