WASHINGTON, Jun 3 US President Joe Biden has signed into law an increase in the national debt ceiling to avoid default, the White House said.
«
"On Saturday, June 3, the president signed the law <…> The «Fiscal Responsibility Act of 2023,» which suspends the public debt ceiling until January 1, 2025,» the statement said.
In addition, the American president thanked congressional leaders for their cooperation in passing this document.
Last week, Biden and lawmakers reached an agreement in principle that will avoid default in the country. At the same time, the head of the White House did not go into details of the deal, saying only that it involves spending cuts, but «protects critically important programs for the working people and ensures economic growth for everyone.»
According to CNN , the agreement calls for a two-year increase in the national debt ceiling in exchange for limiting federal spending in 2024, with the exception of defense, at the level of the current fiscal year. In turn, in 2025, government spending is planned to increase by one percent.
Without congressional approval to expand borrowing limits, the US administration risked being unable to service its financial obligations as early as early June. The Republicans who control the House of Representatives linked their agreement to raise the debt ceiling with the White House's agreement to limit budget spending.
< br />