Investing.com - A budget agreement between US President Joe Biden and House Speaker Kevin McCarthy has been finalized, aiming to suspend the $31.4 trillion debt ceiling until January 1, 2025. The deal is now set for a vote in Congress, where it must pass before June 5th as per the US Treasury's deadline.
The suspension of the nation's borrowing limit will prevent an unprecedented default by the US government and safeguard its economic recovery. After weeks of intense negotiations with House Republicans, both chambers are being urged by Biden to pass this vital measure.
Despite facing opposition from hardline Republicans and progressive Democrats alike, McCarthy is confident that a majority of his party members will support the proposal. This bipartisan agreement proposes spending caps for fiscal years 2024-2025 budgets while also addressing unused COVID funds and various other policy matters.
Senate Republican Leader Mitch McConnell expressed his approval for this urgent progress toward maintaining America's financial integrity through swift passage without unnecessary delays.
Although some members of both parties have voiced their concerns regarding certain aspects of the proposed bill, Democratic leaders anticipate sufficient support from their ranks to move forward with passing this crucial legislation.