Speaker of the House Kevin McCarthy walks to his office after a meeting at Capitol Hill, Washington, on Tuesday. AP
The two parties finally reached a deal late Tuesday evening after a showdown lasting months, then weeks of painstaking negotiations, reports the BBC.
Now the two leaders — Democratic President Joe Biden and Republican Speaker of the House Kevin McCarthy — must sell their weekend agreement to their members of Congress.
They believe that even with some defections on the left and right, they have the votes to pass a bill before the deadline, CNN reported.
The Treasury has moved the day the US would hit its borrowing limit to June 5.
For the moment financial markets appear to have calmed as the prospect recedes of the global economic chaos that would result from the world's biggest economy defaulting on its $31.4 trillion debt, the BBC reported.
That could quickly change, however, if the multi-step process for approving the debt-limit agreement is derailed or otherwise blocked in the days ahead.
The deal introduces new federal spending limits and restrictions on low-income aid programmes in exchange for a debt-limit increase.
The debt ceiling is a spending limit set by Congress which determines how much money the government can borrow, the BBC reported.
Failure to raise it beyond the current cap of roughly $31.4 trillion by June could result in the US defaulting on its debt.
That would mean the government could not borrow any more money or pay all of its bills.
It would also threaten to wreak havoc on the global economy, affecting prices and mortgage rates in other countries.
Indo-Asian News Service
Voting continued on the legislation, which must also be approved by the Democratic-majority Senate before President Joe Biden can sign the measure into law.
Republicans have been seeking spending cuts in areas such as education and other social programmes in exchange for raising the $31.4tn debt limit. The proposed deal has now been published on the House website.
The Federal Reserve meets this week amid mixed signals on the health of the US economy, with some major sectors bouncing back from the coronavirus-caused downturn and others struggling.
The Ministry of Human Resources and Emiratisation (MoHRE) revealed that approximately 5.73 million employees have subscribed to the Unemployment Insurance Scheme since it went into effect on Jan.1, 2023, up until Sept.25, 2023.
Sheikh Hamdan inaugurated the third edition of the Dubai World Congress for Self-Driving Transport and honoured the winners of the Dubai World Challenge for Self-Driving Transport.
She added that immediately after the operation, she had severe bleeding and blood accumulation in the neck, after which she was admitted to intensive care for two days.