The U.S. House of Representatives passed a bill to raise the debt limit and control government spending late Wednesday night, sending it to the Senate only days before the U.S. default deadline on Monday.
The bill was approved by a vote of 314 to 117 in the Republican-controlled House and now moves to the Democratic-controlled Senate, which must pass it and submit it to President Joe Biden before the country runs out of money to pay its bills in June.
To prevent a default that would damage the U.S. economy and disturb global financial markets, Biden hopes to have a bill on his desk in time.
Both leaders are hoping to have the bill passed in 48 hours.
The bill effectively lifts the federal government’s borrowing cap until January 1, 2025.
Timeline permits Biden and Congress to delay the politically fraught matter until after the 2024 presidential election in November.
Additionally, it would put a curb on some government expenditure for the next two years, streamline the approval process for certain energy projects, recoup any unused Covid-19 funding, and impose work requirements for food aid programs for more people.