Biden Hails Bill Raising Debt Limit, Allowing US To Borrow More

Days before the default deadline, the US House of Representatives voted to raise the federal debt limit and also allowing for additional borrowing until January 1, 2025. The House passed the $31.4-trillion Fiscal Responsibility Bill on Wednesday, with broad bipartisan support.

President Joe Biden welcomed the passage of the debt ceiling Bill and urged the Senate to "pass it as quickly as possible" so that he can sign it into law. "This agreement is good news for the American people and the American economy," Biden said in a statement released by the White House.

Ending weeks of tense negotiations between the White House and Republican House Speaker Kevin McCarthy, the Bill was passed by a wide margin of 314-117 with support from both Democrats and Republicans, just five days before the deadline set by the Treasury.

Overcoming opposition led by hardline conservatives and avoid a catastrophic default, the Republican-controlled House voted to send the legislation to the Senate, which must enact the measure and get it to the President's desk before a Monday deadline, when the federal government is expected to run out of money to pay its bills.

The Bill drew opposition from 71 hardline Republicans which would normally be enough to block partisan legislation, but 165 Democrats -- more than the 149 Republicans who voted for it -- backed the measure and pushed it through. Republicans control the House by a narrow 222-213 majority.

The legislation suspends the federal government's borrowing limit. The timeline allows Biden and Congress to set aside the politically risky issue until after the November 2024 presidential election. However, hardline Republicans wanted deeper spending cuts and more stringent reforms.

The Bill will also cap some government spending over the next two years, speed up the permitting process for certain energy projects, claw back unused COVID-19 funds and expand work requirements for food aid programs to additional recipients.