<p>Just days before the United States was set to default on its debt for the first time, the US Congress approved a deal to lift the nation's borrowing limit. The bill, which is well on its way to becoming law, will spare the US from a catastrophic default on its $31.4 trillion in debt.</p>

<p>The bill sped through the Senate by a vote of 63-36, just a day after it sailed through the US House of Representatives. It will need President Joe Biden's signature before transitioning into law. As per BBC, Biden has promised&nbsp;he will enact the measure into law.</p>

<h2><strong>Long-drawn negotiations</strong></h2>

<p>The vote to suspend the federal debt limit comes after weeks of fraught negotiations as the nation tries to eliminate the threat of a disastrous credit default just four days ahead of a deadline set by the US treasury.</p>

<p>"America can breathe a sigh of relief," said Democratic Senate Majority Leader Chuck Schumer, adding that the nation is avoiding default, the consequences of which, in his words, would have been "catastrophic".</p>

<p>"But, for all the ups and downs and twists and turns it took to get here, it is so good for this country that both parties have come together at last to avoid default," he said.</p>

<h2><strong>The havoc a default would have wrought</strong></h2>

<p>As per AFP, the first default in American history would have led to the loss of millions of jobs and $15 trillion in household wealth, and increased costs for mortgages and other borrowings.</p>

<h2><strong>What is the US debt ceiling?</strong></h2>

<p>America spends more money than it earns through taxation. To meet the gap, it borrows money via the issuance of government bonds — seen as the world's most reliable investments.</p>

<p>A limit on this borrowing, as per AFP, was introduced by lawmakers around 80 years ago. It was meant to limit how much federal debt could be accrued by the government.</p>

<p>Since then, it has been raised more than 100 times to allow the US government to meet its spending commitments. The current limit stands at around $31.5 trillion.</p>

<p>Both Democrats and Republicans acknowledge that raising this debt limit is "politically toxic," reports AFP. Even so, they acknowledge that the failure to do so would result in a depression in the US economy and unsettling world markets as the government misses debt payments.</p>

<p><em>(With inputs from agencies)</em></p>

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Just days before the United States was set to default on its debt for the first time, the US Congress approved a deal to lift the nation's borrowing limit. The bill, which is well on its way to becoming law, will spare the US from a catastrophic default on its $31.

Just days before the United States was set to default on its debt for the first time, the US Congress approved a deal to lift the nation's borrowing limit. The bill, which is well on its way to becoming law, will spare the US from a catastrophic default on its $31.4 trillion in debt. The bill sped through the Senate by a vote of 63-36, just a day after it sailed through the US House of Representatives. It will need President Joe Biden's signature before transitioning into law. As per BBC, Biden has promised he will enact the measure into law. Long-drawn negotiations The vote to suspend the federal debt limit comes after weeks of fraught negotiations as the nation tries to eliminate the threat of a disastrous credit default just four days ahead of a deadline set by the US treasury. "America can breathe a sigh of relief," said Democratic Senate Majority Leader Chuck Schumer, adding that the nation is avoiding default, the consequences of which, in his words, would have been "catastrophic". "But, for all the ups and downs and twists and turns it took to get here, it is so good for this country that both parties have come together at last to avoid default," he said. The havoc a default would have wrought As per AFP, the first default in American history would have led to the loss of millions of jobs and $15 trillion in household wealth, and increased costs for mortgages and other borrowings. What is the US debt ceiling? America spends more money than it earns through taxation. To meet the gap, it borrows money via the issuance of government bonds — seen as the world's most reliable investments. A limit on this borrowing, as per AFP, was introduced by lawmakers around 80 years ago. It was meant to limit how much federal debt could be accrued by the government. Since then, it has been raised more than 100 times to allow the US government to meet its spending commitments. The current limit stands at around $31.5 trillion. Both Democrats and Republicans acknowledge that raising this debt limit is "politically toxic," reports AFP. Even so, they acknowledge that the failure to do so would result in a depression in the US economy and unsettling world markets as the government misses debt payments. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US narrowly avoids its first-ever default as Congress approves debt-ceiling suspension

<p>The US House of Representatives on Wednesday (May 31) voted in favour of raising the country's debt ceiling.&nbsp;The passage of the legislation has brought the US one step closer to eliminating debt default, something that not only will be bad for the US but also for the health of world economy. The deadline set by the US Treasury is just five days away.</p>

<p>The lower chamber of US Congress was deeply divided. The deal got 314 votes in favour and 117 against. The legislation will now be sent to US Senate for its approval. It is expected that the Senate will approve the deal before end of the week.<br />
<br />
The bill suspends&nbsp;the $31.4 trillion debt ceiling.&nbsp;It got&nbsp;support from both Democrats and Republicans. But the support had to&nbsp;overcome opposition from hardline conservatives.</p>

<h2><strong>US Debt Ceiling: Biden and MCcarthy break the deadlock, debt limit suspended till January 1, 2025</strong></h2>

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<p>The House voted with overwhelming bipartisan support as 149 Republicans joined 165 Democrats to pass the debt ceiling legislation negotiated by Speaker Kevin McCarthy and President Joe Biden.</p>

<p>The bill would extend the debt limit for two years with a two-year budget agreement if signed into law. It is the culmination of months of political feud and weeks of frantic&nbsp;parleys between the two parties that finally broke a drawn-out stalemate on the issue.</p>

<p><strong>Explained | <a href="https://www.wionews.com/world/explained-us-is-running-out-of-cash-know-what-is-debt-ceiling-and-current-crisis-595534">US is 'running out of cash'. What is the debt ceiling crisis?</a></strong><br />
<br />
The US Congress must ensure the approved deal reaches President Joe Biden’s desk before Monday (June 5), when the federal government is expected to run out of money to pay its bills.</p>

<h2><strong>President Biden hails development</strong></h2>

<p>Shortly after approval from the House of Representatives, US President Joe Biden hailed the development. He described the passage as "a critical step" to prevent a devastating default. He praised both parties.</p>

<p>"Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery.I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement meets that test. I urge the Senate to pass it as quickly as possible so that I can sign it into law, and our country can continue building the strongest economy in the world," he tweeted.</p>

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<p dir="ltr" lang="en">Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery.<br />
<br />
I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement…</p>
— President Biden (@POTUS) <a href="https://twitter.com/POTUS/status/1664081809909456896?ref_src=twsrc%5Etfw">June 1, 2023</a></blockquote>
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The US House of Representatives on Wednesday (May 31) voted in favour of raising the country's debt ceiling. The passage of the legislation has brought the US one step closer to eliminating debt default, something that not only will be bad for the US but also for the health of world economy.

The US House of Representatives on Wednesday (May 31) voted in favour of raising the country's debt ceiling. The passage of the legislation has brought the US one step closer to eliminating debt default, something that not only will be bad for the US but also for the health of world economy. The deadline set by the US Treasury is just five days away. The lower chamber of US Congress was deeply divided. The deal got 314 votes in favour and 117 against. The legislation will now be sent to US Senate for its approval. It is expected that the Senate will approve the deal before end of the week. The bill suspends the $31.4 trillion debt ceiling. It got support from both Democrats and Republicans. But the support had to overcome opposition from hardline conservatives. US Debt Ceiling: Biden and MCcarthy break the deadlock, debt limit suspended till January 1, 2025 The House voted with overwhelming bipartisan support as 149 Republicans joined 165 Democrats to pass the debt ceiling legislation negotiated by Speaker Kevin McCarthy and President Joe Biden. The bill would extend the debt limit for two years with a two-year budget agreement if signed into law. It is the culmination of months of political feud and weeks of frantic parleys between the two parties that finally broke a drawn-out stalemate on the issue. Explained | US is 'running out of cash'. What is the debt ceiling crisis? The US Congress must ensure the approved deal reaches President Joe Biden’s desk before Monday (June 5), when the federal government is expected to run out of money to pay its bills. President Biden hails development Shortly after approval from the House of Representatives, US President Joe Biden hailed the development. He described the passage as "a critical step" to prevent a devastating default. He praised both parties. "Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery.I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement meets that test. I urge the Senate to pass it as quickly as possible so that I can sign it into law, and our country can continue building the strongest economy in the world," he tweeted. Tonight, the House took a critical step forward to prevent a first-ever default and protect our country’s hard-earned and historic economic recovery. I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement… — President Biden (@POTUS) June 1, 2023 × You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

US House passes debt ceiling deal to prevent default, bill heads to Senate for nod before June 5 deadline

Republican and Democratic leaders scrambled to secure congressional support for a bill aimed at avoiding a catastrophic US debt default, with just one week left before the government starts running out of money.

Republicans  and Democrats race against time for US debt crisis bill in Congress

Race against time for US debt crisis bill in Congress