House Passes Bipartisan Debt Deal With Potential Default Looming

The Republican-led US House of Representatives approved a plan to cut spending and raise the federal debt limit that their speaker and President Joe Biden had negotiated, but only with the help of Democrats.

The measure passed 314-117 despite efforts by right-wing Republicans to scuttle the deal by voting against their president.

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Earlier today, Democrats had to be called to support a primary vote to bring the measure to the House floor for consideration.

Wednesday’s vote came after the House Rules Committee narrowly approved the deal, formally known as the “Fiscal Responsibility Act,” by a 7-6 vote late Tuesday.

Financial markets have suffered a seesaw battle to raise the debt limit in recent weeks. Treasury Secretary Janet Yellen warned that the country could run out of cash by June 6.

The bill would actually cut spending by about $1.5 trillion over the next 10 years, while lowering the costs of servicing the public debt by about $188 million. It will raise the US debt ceiling, which currently stands at $31.4 trillion, through January 2025.

About 71 Republican members voted against the agreement. They are the same members who were forced to repeat speaker votes before California Congressman Kevin McCarthy was finally chosen as speaker in January.

The bill will now move to the Senate, which Democrats control narrowly.

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