House of Representatives Approves Increase in U.S. Debt Ceiling; Biden Expresses Gratitude

The U.S. House of Representatives approved an increase in the federal government's debt ceiling with 314 votes in favor and 117 against. This action suspends the current $31.4 trillion debt ceiling. This agreement, seen as a significant step to prevent an economic crisis just five days before the country runs out of funds to pay its bills, suspends the government's borrowing limit until early 2025. President Joe Biden and House Speaker Kevin McCarthy reached a preliminary agreement on June 6 to raise the federal government's $31 trillion debt ceiling, ending a months-long deadlock in negotiations. McCarthy tweeted on the evening of June 6 that he had spoken with the President by phone and they had reached an agreement on principles that are worthy of the American people. After the bipartisan approval from the House, Biden stated in a statement that this agreement is good news for the American people and economy, saying, 'This action protects the priorities and achievements of the past two years, including job creation and healthcare.' Biden added, 'I have been clear that the only way forward is a bipartisan agreement that can garner support from both sides. I urge the Senate to pass it as soon as possible so I can sign it and our country can continue to build the strongest economy in the world.' The U.S. Treasury Department warned on June 5 that without raising the debt ceiling by June 14, the federal government would face problems. Republicans controlling the House of Representatives have pressured for drastic spending cuts and other conditions, including new work requirements in aid programs for low-income Americans and cuts to funding for the Internal Revenue Service. They stated they want to slow the growth of U.S. debt, which is now nearly equal to the annual output of the country's economy. Bipartisan talks between Joe Biden and Kevin McCarthy began in earnest on May 15. Negotiations between the President and the Speaker of the House intensified regarding how to raise the government's debt ceiling. The decision-making process for raising the debt ceiling began; the bill goes to Congress. A preliminary agreement on raising the federal government's debt ceiling was reached. The Speaker of the House reported progress in negotiations over the federal debt ceiling. The national debt ceiling crisis; Biden says he is close to an agreement with McCarthy.