- The debt ceiling showdown in Washington is over and lawmakers finally passed a bill to suspend the U.S. debt ceiling
- A deal in principle was reached that would suspend the debt ceiling until 2025 and put a lid on nondefense government spending
- The agreement freezes nondefense spending next year and limits it to a 1 per cent increase the following year, as well as suspending the debt ceiling to let the government continue borrowing money
- Titled the “Fiscal Responsibility Act,” the bill cleared its first major hurdle Tuesday in a House Rules Committee vote of 7-6 approval
The debt ceiling showdown in Washington is over and lawmakers finally passed a bill to suspend the U.S. debt ceiling.
The Biden Administration and GOP are wrapping up a package to make sure the government can keep paying its bills and prevent financial upheaval.
A deal in principle was reached that would suspend the debt ceiling until 2025 and put a lid on nondefense government spending.
While many investors and businesses breathe a sigh of relief, there was great concern about an economic catastrophe if the U.S. defaults on its debts for the first time ever.
The U.S. officially went past the US$31.381 trillion debt ceiling in January, but used what the Treasury Department calls “extraordinary measures” to pay its bills.
What’s in the deal:
The agreement freezes nondefense spending next year and limits it to a 1 per cent increase the following year, as well as suspending the debt ceiling to let the government continue borrowing money.
The bill also adds work requirements for some people aged 50–54 who receive food stamps through the Supplemental Nutrition Assistance Program (SNAP).
It takes back part of the $80 billion that the government gave out to the Internal Revenue Service to support its enforcement.
It changes the environmental review process for energy projects in an effort to speed them up.
Titled the “Fiscal Responsibility Act,” the bill cleared its first major hurdle Tuesday in a House Rules Committee vote of 7-6 approval. A following vote to begin debate on the bill was approved by the House.
Following this news, the main indexes on Wall Street saw some early gains at the market’s open. To keep to date with reaction from specific U.S.-listed companies following the debt ceiling news, click here to visit Stockhouse’s trending news page.
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