The U.S. House Rules Committee approved a bill brokered by President Joe Biden and Speaker of the House Kevin McCarthy to raise the $31.4 trillion debt ceiling and sent it to the House for consideration and vote.
The committee voted 7-6 in favor of legislation suspending the debt ceiling until January 1, 2025, allowing Biden and lawmakers to delay the politically risky issue until the November 2024 presidential election.
It also caps some government spending over the next two years, speeds up the approval process for some energy projects, and returns unused money to fight COVID-19.
And if the Republican-controlled House of Representatives passes the bill, it will send it to the Senate for debate and a vote.
Both houses of Congress must pass legislation before June 5, when the Treasury Department runs out of money and for the first time in US history it will not be able to pay its debts.
And if the Treasury fails to pay, it could cause economic damage to the US and the global economy.
Source: cnbc
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