|US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy at the White House (Photo: AP)
With an overwhelming House vote, 314-117, the Fiscal Responsibility Act will be approved by the Senate this week to submit to President Joe Biden to sign no later than June 5, when the US would run short of money to pay its debts.
The passage of the bill is the first important step in getting America back on track, said Speaker McCarthy, adding the move protected the national economic recovery.
On the final vote, 165 Democrats backed the measure, while 71 Republicans opposed it. The House of Representatives is being controlled by Republicans with 222 seats, while Democrats hold 213 seats.
The Congressional Budget Office said on Wednesday that the deal would raise the debt limit by 1.5 trillion USD and would reduce deficits by 4.8 trillion USD over a decade.