The bill passed with 314 votes in favor and 117 against. The bill will now be sent to the Senate for debate and a vote, possibly by the end of next week. If passed by the Senate, the bill will be sent to President Biden to sign into law before June 5 - the date when the US Treasury could run out of money to cover financial obligations for the first time in the country's history.

House Speaker Kevin McCarthy speaks about the debt ceiling on May 31 in Washington. Photo: AFP

President Joe Biden welcomed the House's move and urged the Senate to pass the bill as soon as possible. "This agreement is good news for the American people and the American economy," Biden said in a statement released by the White House.

On May 27, after weeks of negotiations on the debt ceiling and budget spending, President Joe Biden and House Speaker McCarthy reached an agreement. According to the agreement, the two sides agreed to suspend the $31.4 trillion debt ceiling for two years, until January 1, 2025; limit budget spending for fiscal years 2024 and 2025, accordingly, in fiscal year 2024, $886 billion will be allocated for the defense budget and $704 billion for non-defense items.

Overall non-defense spending remains unchanged in fiscal 2024. The two sides agreed to increase non-defense spending by 1% in fiscal 2025. In addition, the two sides agreed to recover unused Covid-19 funds; speed up the licensing process for some energy projects; and increase eligibility for pro-poor programs.

VNA