US debt ceiling deal ready for Congress vote – Biden
US President Joe Biden announced that a bipartisan agreement has been reached to raise the US debt ceiling and prevent an imminent default. The president described the deal as a “compromise” and emphasised the importance of the deal.
Republican House Speaker Kevin McCarthy also expressed his support, deeming it “worthy of the American people.”
Now they need to persuade members of Congress to approve the agreement.
The proposed deal is the outcome of lengthy negotiations between Democrats and Republicans. There had been fears that without a deal, the US would exhaust its funds by 5 June. Since the government’s expenditures exceed its tax revenues, borrowing money is necessary to sustain its operations.
Republicans had been advocating for spending reductions in areas like education and social programs in exchange for raising the debt limit, which currently stands at $3.1 trillion.
