Biden signs ‘debt limit’ bill

US President Biden approved the Fiscal Responsibility Bill, which was agreed upon after lengthy negotiations between the White House and the Republicans.

Thus, raising the debt limit prevented the federal government from running out of cash and going into default.

The US reached the debt limit of 31.4 trillion dollars on January 19 and the US Treasury began to take extraordinary measures to avoid exceeding the limit and prevent a possible default.

Unless Congress raises or suspends the debt limit by June 5, it was estimated that the Treasury would be short of resources to meet its obligations.

After lengthy negotiations on the debt limit, an agreement was reached last week and the bill was submitted to Congress.

The Financial Responsibility Bill passed the House of Representatives with a vote of 314 to 117, and passed the Senate with 63 “yes” votes to 36 “no” votes. (AA)