US President Joe Biden signed into law on June 3 the debt ceiling after weeks of debate, aiming to prevent a default.
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| US President Joe Biden signed the debt ceiling bill on June 3. (Source: White House) |
According to the White House announcement, President Joe Biden signed into law the "Fiscal Responsibility Act of 2023" suspending the policy of applying the public debt ceiling to extend borrowing and maintain payment of bills, thereby avoiding a default that could cause panic in the market, widespread job losses and economic recession, with consequences on a global scale.
Earlier, on the evening of June 1, with 63 votes in favor and 36 votes against, the US Senate passed a bipartisan bill to suspend the policy of applying the public debt ceiling, thereby avoiding the first debt default disaster in US history, which could have caused a global financial crisis.
According to the agreement, the two sides agreed to suspend the debt ceiling of 31.4 trillion USD for 2 years, until January 1, 2025; limit budget spending for fiscal years 2024 and 2025, accordingly in fiscal year 2024, 886 billion USD will be allocated for the defense budget and 704 billion USD for non-defense items.
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