In a significant development, the US House of Representatives has successfully passed a bill aimed at increasing the debt ceiling. With a decisive vote of 314 in favor and 117 against, the bill’s approval comes as a crucial measure to prevent a historic debt default by the US government.
The legislation, known as The “Fiscal Responsibility Act,” will now advance to the US Senate for further consideration. Should the Senate also approve the bill, it will then be presented to President Joe Biden, the leader of the United States, to be signed into law and take effect.
Time is of the essence as the bill must be passed before the looming June 5 deadline, after which the United States would face the risk of a severe and unprecedented default.
However, prior to the bill’s passage in the House of Representatives, it faced contention among Republican lawmakers. More than 20 conservative members expressed their intent to vote against the bill, accusing House Speaker Kevin McCarthy of capitulating to President Biden in exchange for minor adjustments to the budget, rather than the substantial changes that had been agreed upon.
According to the US Congressional Budget Office (CBO), if Congress successfully passes the bill to increase the debt ceiling, it is projected that the federal budget deficit will decrease by $1.5 trillion over the next 10 years. This forecast reinforces the importance of enacting the legislation into law to ensure fiscal stability and responsible financial management.