American lawmakers racing to avoid a catastrophic default have voted to pass a bill that will enable the federal government to borrow more money.
Both sides of politics overwhelmingly passed the measure to suspend the federal government’s $US31.4 trillion ($41.4 trillion) debt ceiling until January 2025.
Democrats and Republicans overcame opposition from hardline conservatives just days before the US was due to default on its debt on Monday.
On Wednesday (local time), the Republican-controlled House voted 314-117 to send the legislation to the Democrat-controlled Senate.
Under a tight timeframe, it needs to get to President Joe Biden’s desk before Monday, when the federal government is expected to run out of money to pay its bills.
Once law, it means the debt limit will be suspended until January 1, 2025, meaning the US will avoid defaulting on its debt repayments.
Mr Biden welcomed the passage of the debt ceiling bill and urged the Senate to “pass it as quickly as possible” so that he can sign it into law.
“This agreement is good news for the American people and the American economy,” Mr Biden said in a statement released by the White House.
The bill, a compromise between Mr Biden and House Speaker Kevin McCarthy, drew opposition from 71 hardline Republicans.
That would normally be enough to block partisan legislation, but 165 Democrats backed the measure and pushed it through.
Republicans control the House by a narrow 222-213 majority.
The legislation suspends – in essence, temporarily removes – the federal government’s borrowing limit through January 1, 2025. The timeline allows Mr Biden and Congress to set aside the politically risky issue until after the November 2024 presidential election.
It will also cap some government spending over the next two years, speed up the permitting process for certain energy projects, claw back unused COVID-19 funds and expand work requirements for food aid programs to additional recipients.
Hardline Republicans had wanted deeper spending cuts and more stringent reforms.
“At best, we have a two-year spending freeze that’s full of loopholes and gimmicks,” said Representative Chip Roy, a prominent member of the hardline House Freedom Caucus.
Progressive Democrats – who along with Mr Biden had resisted negotiating over the debt ceiling – opposed the bill for a few reasons, including work requirements from some federal anti-poverty programs.
“Republicans are forcing us to decide which vulnerable Americans get to eat or they’ll throw us into default. It’s just plain wrong,” said Democratic Representative Jim McGovern on Wednesday.
Late on Tuesday, the non-partisan Congressional Budget Office said the legislation would result in $US1.5 trillion in savings over a decade. That is below the $US4.8 trillion in savings that Republicans aimed for in a bill they passed through the House in April, and also below the $US3 trillion in deficit that Mr Biden’s proposed budget would have reduced over that time through new taxes.
In the Senate, leaders of both parties said they hoped to move to enact the legislation before the weekend. But a potential delay over amendment votes could complicate matters.
Republicans said Senate Majority Leader Chuck Schumer and Senate Minority Leader Mitch McConnell could need to allow votes on Republican amendments to ensure quick action.
But Mr Schumer appeared to rule out amendments on Wednesday.
“We cannot send anything back to the House, plain and simple. We must avoid default,” he said.
Senate debate and voting could stretch into the weekend, especially if any one of the 100 senators tries to slow passage.
Hardline Republican Senator Rand Paul, long known for delaying important Senate votes, has said he will not hold up passage if allowed to offer an amendment for a floor vote.
Senator Bernie Sanders, a progressive independent who caucuses with the Democrats, said he would oppose the bill due to inclusion of an energy pipeline and extra work requirements.
“I cannot, in good conscience, vote for the debt ceiling deal,” Mr Sanders said on Twitter.
