U.S. House of Representatives approved a bill to raise the national debt ceiling

The U.S. House of Representatives on Wednesday approved a bill to raise the national debt ceiling in order to prevent a default in the country. There were 314 congressmen in favor of the initiative and 117 against.

Next, the document must be approved by the Senate, after which it will go to U.S. President Joe Biden for his signature. The U.S. leader earlier urged both houses of Congress to support the initiative. House Speaker Kevin McCarthy expressed confidence that the lower house of the legislature would approve the bill.

Late last week, the White House and Republicans in Congress reached agreements to raise the U.S. national debt ceiling by January 1, 2025. The bill agreed to by the parties calls for $886 billion for defense in fiscal year 2024, $121 billion for veterans’ health care, and $637 billion for other non-defense programs.

U.S. Treasury Secretary Janet Yellen previously warned Congress that the administration could exhaust emergency measures as the national debt ceiling is reached on June 5. In such a case, the country would face a default on the federal debt, which would lead to an “economic catastrophe” in the U.S., which would cause turmoil in the global economy as well.

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