Passage of the “debt limit” bill of the US House of Representatives.
The US House of Representatives has passed a bill that would prevent the country from defaulting by raising the debt limit.
The bill, which was agreed to after long negotiations between the White House and Republicans, was approved in the House of Representatives by a vote of 314 to 117.
“Tonight, the House of Representatives took a critical step to prevent the first default and protect our country’s historic economic recovery,” US President Joe Biden said in a written statement after the House approved the bill.
Stating that the budget deal in question was a compromise that was supported by both sides, Biden noted that both sides were unable to get everything they wanted during the negotiations.
“I urge the Senate to pass the bill as soon as possible so that I can sign it and our country can continue to build the strongest economy in the world,” Biden said. he used his statements.
THE NEXT STOP OF THE US Senate PROJECT
The next stop for the bill, which provides for the suspension of the debt limit until January 1, 2025, will be the US Senate.
If the bill passes the Senate, it will be submitted for President Biden’s signature to become law.
Therefore, increasing the debt limit will prevent the federal government from running out of cash and going into default.
ARE PLANNING STRICT EXPENSES
In addition to the suspension of the debt limit, the bill, which provides for cuts in spending on some federal programs, plans to introduce new work requirements for some recipients of state aid, including food aid programs.
The bill provides for the recovery of relief funds that were provided but not used during the Covid-19 outbreak.
In addition, the bill aims to speed up the permitting process for some energy projects.
According to the US Congressional Budget Office (CBO) budget deficit and federal debt impact assessment of the bill, the budget deficit is expected to decrease by approximately $1.5 trillion in the next few years. next 10 years if the law is approved and a cap is established. assignments are running as planned.
THE LIMIT NEEDS TO BE INCREASED UNTIL JUNE 5TH
The US reached the debt limit of $31.4 trillion on January 19 and the US Treasury began taking extraordinary measures to avoid exceeding the limit and prevent a possible default.
The Treasury Department warned that these extraordinary measures could run out by early June.
In a recent letter to US House Speaker Kevin McCarthy on the debt limit, Treasury Secretary Janet Yellen predicts that the Treasury will run out of resources to meet its obligations if the Congress does not raise or suspend the debt limit before June 5. on the basis of available data.
The US Treasury’s cash level fell to $38.8 billion as of May 25, the lowest level since 2017 as debt limit negotiations continued. (AA)