The United States has avoided the risk of default.

SGGPO 02/06/2023 12:00

With 63 votes in favor and 36 against, the US Senate passed a bill on the evening of June 1st (local time) to suspend the debt ceiling policy, thereby averting the first debt default disaster in US history.

The US Capitol building on the night of June 1st as the Senate voted to pass a debt ceiling bill to avert the first-ever default in the country's history. Photo: REUTERS

In a statement, President Joe Biden praised Congress's timely action, emphasizing: "This bipartisan agreement is a great victory for the economy and the people." Biden also announced he would sign the law into law as soon as possible.

According to US media, the debt ceiling bill will be sent to President Biden for signing into law, with only a few days left until the June 5-6 deadline warned by the US Treasury Department for parties to reach an agreement to suspend the $31.4 trillion debt ceiling before the federal budget runs out. The day before, with 314 votes in favor and 117 against, the US House of Representatives also passed the bill and sent it to the Senate for consideration. President Biden has urged the Senate to quickly pass the bill so he can sign it into law.

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

Thus, non-defense spending in general remained unchanged in fiscal year 2024. Both sides agreed to increase non-defense spending by 1% in fiscal year 2025. In addition, both sides agreed to recover unused Covid-19 funds; expedite the licensing process for certain energy projects; and increase the eligibility criteria for programs for the poor.

Source: https://www.sggp.org.vn/nuoc-my-thoat-nguy-co-vo-no-post692159.html