Debt Ceiling: House Passes Bipartisan Debt Deal With Potential Default Looming

June 1, 2023
1 min read
Debt Ceiling: House Passes Bipartisan Debt Deal With Potential Default Looming

The Republican led U.S. House approved a plan to cut spending and raise the Federal debt limit negotiated by their speaker and President Joe Biden, but only with the help of Democrats.

The measure passed 314-117 in spite of efforts by right-wing Republicans to scuttle the deal by voting against their own speaker.

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Earlier in the day, Democrats had to be called on to support a preliminary vote to bring the measure to the House floor for consideration.

Wednesday’s vote came after the House Rules committee narrowly approved the deal, officially known as the ‘Fiscal Responsibility Act’, by a 7-6 vote late Tuesday.

Financial markets have been buffeted by the seesaw battle to get the debt limit raised in recent weeks. Treasury Secretary Janet Yellen has warned the country could run out of cash by June 6.

The bill would effectively cut spending by around $1.5 trillion over the next ten years, while reducing public debt servicing costs by around $188 million. It would lift the U.S. debt ceiling, which currently sits at $31.4 trillion, until January of 2025.

Some 71 Republican members voted to oppose the deal. They are the same members who forced repeated speakership votes before California Congressman Kevin McCarthy finally was chosen as speaker in January. 

The bill will now move to the Senate, which is narrowly controlled by Democrats.

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