US debt ceiling deal passes first congressional hurdle
Overcoming a major hurdle to the budget deal, House Speaker Kevin McCarthy convinced other Republicans in Congress to lift the debt ceiling – a plan he worked on with US President Joe Biden on Sunday.
The Internal Regulation Committee, which determines the scheduling of bills for appreciation in the floor of the House, voted 7-6 to allow the bill to advance to the full chamber.
Two Republicans on the committee – ultraconservatives who wanted deeper spending cuts – went against his leadership in opposing the bill.
During the vote, two hardline Republicans joined four left-wing Democrats in opposing the deal ahead of an estimated June 5 deadline to prevent the country from defaulting on its debt. The left wing of the Democratic Party is unhappy that Biden has made any concessions on spending limits.
The bill still needs the support of lawmakers in a vote scheduled for Wednesday in the Chamber of Deputies.
How will the deal help?
Without consensus on the deal, the US government could start to run out of money and default on its debt.
House and Senate approval would also allow the government to pay Social Security beneficiaries, veterans and public sector employees.
The details of the deal outlined in the 99-page bill would limit government spending for the next two years.
What’s next for the US debt ceiling deal?
Since the prospects of finding fully satisfied lawmakers are slim, Biden and McCarthy are eyeing support from the political center, which is quite rare in US politics.
The bill needs about 218 votes to pass in the 435-member House.
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.