Approves agreement

The vote in the House of Representatives on Tuesday followed party lines, with 219 yes votes from Democrats and 206 no votes from Republicans.

Last week, the interim agreement was approved in the Senate, where all 50 Democrats voted in favor, while 48 Republicans voted against. Two abstained.

The deal, which now only needs Biden’s signature to take effect, postpones the US debt crisis until at least mid-December by raising its debt ceiling by a further $ 480 billion. The current debt ceiling was set this summer and is $ 28.4 trillion.

The temporary agreement makes it possible for the central government to take on new debt and pay off debt obligations until December. Without agreement, there would have been a real risk of the US defaulting on government debt, with chaos in international financial markets and the loss of creditworthiness as a result. Without any solution, some public services, such as issuing checks for social assistance, could have stopped.

The temporary agreement means that the Congress will already in December have to go new rounds in an attempt to agree on a solution for how government activities should be financed, as well as the conditions for a new upward adjustment of the debt ceiling before the members of Congress go home for the Christmas holidays.

(©NTB)

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