Debt ceiling news – live: Biden signs debt limit bill after hailing deal in Oval Office address

President Joe Biden has signed a bill to raise the national debt limit two days before the default deadline.

The White House announced the signing in a statement on Saturday afternoon, hours after Mr Biden spoke to the nation on Friday evening from the Oval Office and welcomed the bill’s bipartisan passage.

The Senate on Thursday passed a bipartisan agreement forged by Mr Biden and House Speaker Kevin McCarthy to raise the $31.4 trillion US debt ceiling after the deal survived a Republican rebellion in the House of Representatives.

The narrowness of the Fiscal Responsibility Act’s passage through the House was made possible through the support of Democrats, who stepped in to thwart a conservative revolt that badly undermined Speaker McCarthy’s claims to control his increasingly divided party.

Full congressional approval was required before Monday 5 June, when the Treasury Department was expected to run out of funds to pay its debts for the first time in American history, triggering likely economic chaos.

Key Points

• Biden addresses the nation and touts debt limit agreement in primetime speech

• Senate passes debt limit bill after marathon 11 amendment votes to avoid default

• Debt limit bill advances in House by vote of 314-117

• Kevin McCarthy ally says White House got ‘schooled’ in debt negotiations

• Does this deal mean the end of McCarthy’s speakership?

Watch: Lindsey Graham says ‘party of Ronald Reagan is dying'

Thursday 1 June 2023 18:30 , Oliver O'Connell

Angry progressives and conservatives hit out as Democrats push through Biden-McCarthy debt ceiling deal

Thursday 1 June 2023 18:45 , Oliver O'Connell

The House of Representatives has voted to raise the debt limit, thereby ensuring the United States will avoid defaulting on its debt, despite vocal opposition from many Republicans in the House majority.

Eric Garcia explains who is unhappy.

Progressives and conservatives complain as Biden-McCarthy debt deal passes

What’s next for Biden-McCarthy debt ceiling deal

Thursday 1 June 2023 19:00 , Oliver O'Connell

The Senate will be in a race against the clock to pass the bipartisan debt limit legislation that the House of Representatives passed on Wednesday evening before the United States hits the date when it will default on its debt.

Eric Garcia explains what has to be done.

What’s next for Biden-McCarthy debt limit deal as Senate races to beat default?

Senators aiming for final vote tonight

Thursday 1 June 2023 19:10 , Oliver O'Connell

CNN’s Manu Raju reports:

Leaving lunch, Sens. Rick Scott and Mitt Romney told me that senators are looking to finish up the debt limit vote tonight. Meaning amendment votes (which will fail) and final passage. They still need an agreement of all 100 senators, but the goal is to get a final vote tonight.

Eric Bolling says McCarthy debt deal handed Biden second term

Thursday 1 June 2023 19:20 , Oliver O'Connell

Here’s what Newsmax host Eric Bolling had to say about the debt deal, via Mediaite:

Speaking before the final vote on The Balance, Bolling shredded the particulars and particularly shredded McCarthy for giving the win to the Democrats.

“Joe Biden must be so happy right now,” Bolling said. “He doesn’t have to deal with his massive deficit issues until after the 2024 election. How convenient. And for that, you can thank none other than House Speaker Kevin McCarthy.”

Bolling said that it could have been a big issue for Republicans to revisit in the campaign, but “Sleepy Joe didn’t want that, and Kevin McCarthy may have handed Joe Biden a second term in this deal.”

Boebert didn’t turn up to vote on debt ceiling deal

Thursday 1 June 2023 19:45 , Oliver O'Connell

MAGA firebrand Lauren Boebert emerged as one of the fiercest critics to the debt ceiling deal brokered by House leader Kevin McCarthy and President Joe Biden to avoid a catastrophic default.

But when it was time for the House of Representatives to cast their votes on Wednesday night, she failed to show up.

Ms Boebert was mocked on social media after she reportedly “narrowly missed the vote, running up the steps right as they gaveled”, according to Axios Capitol Hill reporter Juliegrace Brufke.

Bevan Hurley reports.

Boebert didn’t turn up to vote on debt ceiling deal she furiously campaigned against

Global stocks recover after debt ceiling bill passed in US

Thursday 1 June 2023 20:10 , Anna Wise, PA

Global shares clawed back gains on Thursday after the long-awaited US debt ceiling saga neared a conclusion.

Members of the House of Representatives, which is Republican controlled, passed a new bill which suspends the ceiling, and it is now heading to the Senate for final approval.

Global sentiment had been rocked over fears the nation would default on its own debt and not be able to pay any bills, with an economic impact that would be felt globally.

European markets edged higher and US investors were feeling more positive after sustaining significant losses earlier in the week, but it was a somewhat muted reaction to the debt ceiling breakthrough.

Mining stocks helped lift the FTSE 100 higher after a jump in oil and copper prices, but it still lagged below the 7,500 mark.

Read more:

Global stocks recover after debt ceiling bill passed in US

What is the US debt ceiling and why does it matter that lawmakers have reached a deal?

Thursday 1 June 2023 20:30 , August Graham, PA

Shares inched higher in London on Thursday, and the pound made gains against the dollar, after US lawmakers in the House of representatives passed a new bill on the country’s debt ceiling.

The bill, which suspends the ceiling, passed with both Democrats and Republicans supporting it, and will head to the US Senate for the final approval.

The House – which is Republican controlled – had widely been seen as the bigger hurdle out of the two bodies of Congress.

By around 2pm, ahead of US markets opening, London’s FTSE 100 was trading up 0.2% at 7,462 points.

One pound could buy around 1.25 dollars, up one third of a per cent from the day before.

But what is the debt ceiling, and what might have happened if the US had hit it?

What is the US debt ceiling and why does it matter that lawmakers have reached a deal?

White House soft-pedals debt ceiling achievement to avoid pushing away GOP

Thursday 1 June 2023 20:50 , Gustaf Kilander

White House staffers attempted to soft-pedal their agreement with House Speaker Kevin McCarthy, despite considering a major win, according to Politico.

Officials were concerned that any boasting about the agreement without prompt a Republican backlash and make it harder to pass.

Other than ensuring its passage, the Biden team also wanted to appear as the “adults in the room” in a highly partisan environment and use the negotiations as an outline for the 2024 reelection campaign.

What is the debt ceiling rule?

Thursday 1 June 2023 21:10 , August Graham, PA

The US introduced the debt limit in 1917 at what today looks like a tiny 11.5 billion dollars.

At the time, they set it up to make the process of borrowing money easier – until then Congress had to pass new legislation to approve all borrowing.

By instead putting a limit on borrowing, it allowed the executive branch of the Government more flexibility in what and when it borrowed, so long as it did not borrow more than the ceiling.

‘I live in reality, not conservative fantasy land,’ Marjorie Taylor Greene says

Thursday 1 June 2023 21:30 , Gustaf Kilander

Josh Hawley announces he’s a no on debt deal: ‘We’ve got to quit making China rich'

Thursday 1 June 2023 21:36 , Gustaf Kilander

Underestimated McCarthy emerges from debt deal empowered as speaker, still threatened by far right

Thursday 1 June 2023 22:00 , Lisa Mascaro, AP

House Speaker Kevin McCarthy is nothing if not a political survivor.

Underestimated from the start, the Republican who cruised around his California hometown of Bakersfield and stumbled into a career in Congress was never taken too seriously by the Washington establishment.

With overwhelming House passage of the debt ceiling and budget deal he negotiated with President Joe Biden, the emergent speaker proved the naysayers and eye-rollers otherwise. A relentless force, he pushed a reluctant White House to the negotiating table and delivered the votes from his balky House GOP majority to seal the deal.

“You still ask the same questions each week: Do you think you can pass the bill this week. Do you think you will still be speaker next week,” McCarthy chided reporters after Wednesday’s late night vote.

“Keep underestimating us,” he said, “and we’ll keep proving to the American public that we’ve never given up.”

Read more:

Underestimated McCarthy emerges from debt deal empowered as speaker, still threatened by far right

What is the debt ceiling now?

Thursday 1 June 2023 22:30 , August Graham, PA

The ceiling has been raised many times over the past century since it was introduced – taking it to 31.4 trillion dollars.

Historically this largely happened without much drama – after all Congress gets to vote on the Government’s spending during the budget negotiations.

But from the mid-1990s the US Republicans have on several occasions used the debt ceiling as leverage to pressure Democratic Presidents into making changes to its spending.

What did the June deadline mean?

Thursday 1 June 2023 23:00 , August Graham, PA

The Treasury had originally set a June 1 deadline to raise or suspend the debt ceiling, but last week extended it until next Monday.

This deadline is not as inflexible as it might first seem. Instead it is more like an estimate of when the US might hit up against the ceiling.

The debt limit was increased by 2.5 trillion dollars in 2021 to a little under 31.4 trillion dollars, but by January this year US Treasury Secretary Janet Yellen said that the Government was set to reach that limit.

She has since taken measures to make the money last as long as possible, using different tools to avoid a default.

This has meant issuing hundreds of billions of dollars of IOUs, using up the hundreds of billions in cash that the Government had in its accounts, and also using up the tax money that it collected in the intervening months.

The deadline is also not set in stone. If the Government can eek out a few more weeks and make its money last until June 15 there will be another injection of tax money into the coffers as another tax deadline approaches.

Biden and McCarthy’s debt limit deal went through – but there are winners and losers

Thursday 1 June 2023 23:30 , Eric Garcia

The House of Representatives voted on Wednesday evening to raise the debt limit, with more Democrats voting to raise the limit than Republicans, and all but guaranteeing its passage in the United States Senate.

The vote served as a triumph for House Republicans as they moved the White House from initially wanting to have a clean debt limit increase to agreeing to some spending cuts. But 71 Republicans still opposed the agreement negotiated by the Biden administration and Reps Patrick McHenry (R-NC) and Garret Graves (R-LA).

Senate Majority Leader Chuck Schumer has said he hopes to pass the legislation quickly and before 5 June, when the Treasury Department says the United States will be unable to fulfill its debt obligations and risk defaulting on its debt.

This was the first major test for House Republicans’ resolve since they took control of the lower chamber in January after a protracted series of votes to get a speaker. Some conservatives crowed that the bill did not go far enough in spending cuts while House Republican leaders say they forced the White House’s hand. Conversely, progressive Democrats criticised the deal for putting in place work requirements for social welfare programs.

These are the winners and losers of the debt limit standoff:

Biden and McCarthy’s debt limit deal went through – but there are winners and losers

Winner: Sen Joe Manchin (D-WV)

Friday 2 June 2023 00:00 , Eric Garcia

Even with a Republican House and an additional Senate seat, Sen Joe Manchin continues to have a profound impact on any piece of legislation. Throughout the deliberations, House Speaker Kevin McCarthy cited him. Mr Manchin has raised a ruckus in recent months, opposing the Biden administration’s nominees in response to the White House’s implementation of the Inflation Reduction Act, the signature law he brokered with Senate Majority Leader Chuck Schumer last year, which he says is too focused on promoting green energy alternatives.

But the debt limit agreement gave him a win when it included the approval of the Mountain Valley Pipeline, a natural gas pipeline that would span from West Virginia to Virginia. Mr Manchin had attempted to get the pipeline approved last year to no avail. But the approval also incensed many Virginia Democrats, including Sen Tim Kaine (D-VA), who proposed an amendment to strike the provision from the text.

This could be a long night...

Friday 2 June 2023 00:02 , Oliver O'Connell

Andrew Desidero of Punchbowl News reports that there will be 11 amendment votes in the Senate before a vote on the final passage of the Fiscal Responsibility Act.

100 senators need to sign off on amendments list before voting start

Friday 2 June 2023 00:04 , Oliver O'Connell

CNN’s Manu Raju provides the following context:

Senate leaders propose a list of 11 amendments followed by a final vote on the debt ceiling bill, according to a notice just sent to all senators. All votes would be subject to a 60-vote threshold, and all are expected to fail other than final passage of the bill.

They need all 100 senators to sign off on the deal to start voting. If there’s a time agreement, this would push final passage vote until very late into the night, potentially past midnight.

A standalone defence bill?

Friday 2 June 2023 00:09 , Oliver O'Connell

Senator Lindsey Graham says Senate Majority Leader Chuck Schumer will soon announce a commitment from him and President Joe Biden for a standalone defence bill.

Amendment votes from three senators only require majority

Friday 2 June 2023 00:13 , Oliver O'Connell

Three of the proposed amendments to the Fiscal Responsibility Act only require a simple majority. They are proposed by senators Lee, Kaine, and Kennedy. The remaining eight require a majority of 60 votes, as does the final passage of the bill.

Voting to commence at 7.30pm

Friday 2 June 2023 00:25 , Oliver O'Connell

Chuck Schumer has locked in a time agreement on the 11 amendment votes and final passage vote with only 10 minutes allotted to each amendment after the first one.

Voting will commence at 7.30pm.

None of the amendments are expected to pass.

Mr Schumer has asked senators to stay in or near the chamber.

What is needed to raise the debt ceiling?

Friday 2 June 2023 00:30 , August Graham, PA

A bill that would raise the debt ceiling would need to get a majority of votes in both the US Senate and the House of Representatives.

The Senate is controlled by Democrats so any increase that Joe Biden wants to get will more likely pass there. But Republican-controlled House is a bigger hurdle.

Republican House Speaker Kevin McCarthy is also very weak. It took 15 attempts for him to manage to convince enough Republicans to vote for him to become the speaker.

He therefore cannot afford to lose the support of more than a few of his colleagues, including some on the extreme fringe of the party.

‘Let’s finish the job and send this very important bipartisan bill to the president’s desk tonight'

Friday 2 June 2023 00:35 , Oliver O'Connell

Here’s what Senator Chuck Schumer told the Senate this evening:

I am pleased, so pleased, to announce that both sides have just locked in an agreement that enables the Senate to pass legislation tonight, avoiding default.

This is what will happen on the floor, in a few minutes, the Senate will begin holding votes on 11 amendments, 10 from the Republican side, one from the Democratic side. To finish our work tonight, after the first amendment, we are limiting each vote to ten minutes. So i ask my colleagues to stay in their seats or near the floor during the votes. Let's keep this process moving quickly. After we finish voting on the amendments, we are immediately considering final passage and by passing this bill we will avoid default tonight.

America can breathe a sigh of relief, because with this process we are avoiding default. From the start, avoiding default has been our north star. The consequences of default would be catastrophic. It would almost certainly cause another recession. It would be a nightmare for our economy and millions of american families. It would take years, years to recover from. But for all the ups and downs and twists and turns it took to get here, it is so good for this country that both parties have come together at last to avoid default.

I thank my colleagues, both sides of the aisle, for their cooperation. Let's finish the job and send this very important bipartisan bill to the president's desk tonight.

How did Biden and McCarthy strike the debt limit deal?

Friday 2 June 2023 00:54 , Oliver O'Connell

It was advice that Mitch McConnell had offered to Joe Biden once already: To resolve the debt-limit standoff, he needed to strike a deal with House Speaker Kevin McCarthy — and McCarthy alone. But after a first meeting of the top four congressional leaders with the president in early May, the Senate minority leader felt the need to reemphasize his counsel.

After returning from the White House that day, McConnell called the president to privately urge him to “shrink the room” – meaning no direct involvement in the talks for himself, Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.

That, McConnell stressed to Biden, was the only way to avert a potentially economy-rattling default.

Read more...

'Shrink the room:' How Biden and McCarthy struck a debt-limit deal and staved off a catastrophe

Loser: SNAP Recipients between the ages of 50 to 54

Friday 2 June 2023 01:00 , Eric Garcia

Throughout the deliberations, Republicans insisted on putting in place work requirements for the Supplemental Nutrition Assistance Program, also known as SNAP and formerly called food stamps. While ultimately the agreement did not include work requirements for Medicaid, it raised the age for work requirements for able-bodied adults without children between the ages of 50 and 54.

The legislation also reduces the number of exemptions that states can use for people who would otherwise be subject to work requirements and prevents them from carrying over exemptions for more than one year.

Schumer reads joint statement with McConnell on defence appropriations

Friday 2 June 2023 01:25 , Oliver O'Connell

Senator Chuck Schumer reads a joint statement with Senator Mitch McConnell on defence appropriations

“This debt ceiling deal does nothing to limit the Senate’s ability to appropriate emergency supplemental funds to ensure our military capabilities are sufficient…”

He says they can still address funding to counter threats from Iran, China, and Russia, including its ongoing war on Ukraine.

Mr Schumer adds: “I want to remind members, we were indulgent in the first vote, that’s over. We’re doing 10 minute votes. Please stay in your seats so we can finish this bill in a reasonable hour.”

The first amendment vote was defeated by a wide margin.

What would the economic impact be of hitting the debt ceiling?

Friday 2 June 2023 01:45 , August Graham, PA

Ultimately much more than can be summarised here.

It also would depend on how long the situation goes on for. In early May, Alec Phillips, chief US political economist at Goldman Sachs Research, warned that a delay of any more than a few days would see massive amounts of money being pulled from the US economy and could easily tip the US into a recession.

Even coming close to the deadline could create problems. In the 2011 debt ceiling battle, rating agency Standard & Poor’s downgraded the US’s credit rating even though a deal was reached a day before the deadline.

“On the economic side it’s not complicated. It would just be bad,” Mr Phillips said.

He said that a brief delay would, from a direct economic perspective, be worth around 10 billion dollars a day.

The Congressional Budget Office and the US Treasury Department estimate that any brinkmanship could cost 200,000 jobs in the third quarter of the year, a short default would put half a million out of work while a protracted default would see 8.3 million jobs lost and 6.1% shaved off GDP.

The economic impacts will also be felt globally, as so much of the world economy is based on the US financial system.

Amazingly the senate is close to sticking to Schumer’s 10-minute rule

Friday 2 June 2023 02:02 , Oliver O'Connell

Winners: Foster care, veterans and people experiencing homelessness

Friday 2 June 2023 02:30 , Eric Garcia

While the legislation imposes new work requirements for able-bodied adults, it also exempts people who are experiencing homelessness, veterans and people between the ages of 18 and 24 who aged out of the foster care system from such requirements. The Congressional Budget Office estimated that when the work requirements and new exclusions are in effect, “approximately 78,000 people would gain benefits in an average month” between the 2025 to 2030 period.

One senator absent tonight

Friday 2 June 2023 03:09 , Oliver O'Connell

Just one senator is not at the Capitol for tonight’s debt limit bill votes, Senator Hagerty.

He is home for his son’s high school graduation. A spokesperson says: “Senator Hagerty regrets to miss any vote, but he made a commitment to his son and his family to be with them on this important day.”

Loser: Student debtors

Friday 2 June 2023 03:15 , Eric Garcia

When Republicans initially passed the Limit, Save and Grow Act in April, it rolled back the Biden administration’s student loan cancellation. That ultimately did not end up in the final bill. But Republicans did get the White House to agree to end the current pause on student loan payments that the Trump administration put in place during the Covid-19 pandemic. Student debtors will begin paying their loans at the end of August.

Final vote to increase debt limit underway

Friday 2 June 2023 03:47 , Oliver O'Connell

The Senate vote to increase the debt limit is underway, with 60 votes needed.

All 11 amendments proposed by senators were rejected in a marathon voting session this evening.

Senate passes bill to increase debt ceiling 63-36

Friday 2 June 2023 03:55 , Oliver O'Connell

Full story: Senate passes debt limit bill after marathon 11 amendment votes to avoid default

Friday 2 June 2023 04:00 , Oliver O'Connell

The Senate voted late on Thursday night to raise the debt limit and avoid allowing the United States to default on its debt for the first time in history after having an all-night marathon session of votes to assuage Republican concerns.

The legislation passed 63 to 36 after senators held 11 votes on amendments —10 from Republicans and 1 from Democrats — to address concerns about the bill.

Eric Garcia reports for The Independent from Capitol Hill.

Senate passes debt limit bill after marathon 11 amendment votes to avoid default

Winner and Loser: House Speaker Kevin McCarthy

Friday 2 June 2023 05:00 , Eric Garcia

The debt limit standoff was the California Republican’s first big test after a marathon 15 votes to earn the gavel in January. On one end, he moved the White House from its initial position of wanting a clean debt limit increase. He did so through an aggressive media and messaging strategy, often speaking to reporters both at the White House and again when he returned to the Hill. He put in place work requirements that Republicans have long wanted and dispatched two of his top negotiators. A majority of House Republicans also ultimately voted for the increase, meaning he did not break an internal House GOP rule.

But many conservatives rattled their sabres once negotiators announced they had reached a deal, such as the House Freedom Caucus, which includes many Republicans who had switched their votes in January after he made a series of side deals, many of them pertaining to the debt limit. And ultimately, 71 Republicans voted against the legislation, including some of his allies and more than just the rabble-rousers in the Freedom Caucus. He could face an internal rebellion in the coming months.

Winner and Loser: President Joe Biden

Friday 2 June 2023 06:00 , Eric Garcia

The president had some wins and some losses. Right out the gate ahead of his State of the Union Address, he got Mr McCarthy and House Republicans to take cuts to Social Security and Medicare off the table. His student loan forgiveness program remains intact and only a small amount of money allocated to the Internal Revenue Service in the Inflation Reduction Act will be cut in the final bill. Many of the other climate aspects in the bill remain in place as well.

At the same time, Mr Biden wanted a clean debt limit increase, which he didn’t get and had to negotiate with the House. He also failed to make the case to the American public about the need for the United States to fulfill its debt obligations and the risks of defaulting on its debt.

Democrat who almost beat Lauren Boebert in 2022 blasts her for not voting on debt deal

Friday 2 June 2023 07:00 , Gustaf Kilander

Senate passes GOP bill overturning student loan cancellation, teeing it up for Biden veto

Friday 2 June 2023 08:00 , AP

A Republican measure overturning President Joe Biden‘s student loan cancellation plan passed the Senate on Thursday and now awaits an expected veto.

The vote was 52-46, with support from Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana as well as Arizona Sen. Kyrsten Sinema, an independent. The resolution was approved last week by the GOP-controlled House by a 218-203 vote.

Biden has pledged to keep in place his commitment to cancel up to $20,000 in federal student loans for 43 million people. The legislation adds to Republican criticism of the plan, which was halted in November in response to lawsuits from conservative opponents.

The Supreme Court heard arguments in February in a challenge to Biden’s move, with the conservative majority seemingly ready to sink the plan. A decision is expected in the coming weeks.

Read more:

Senate passes GOP bill overturning student loan cancellation, teeing it up for Biden veto

The debt limit vote signals the beginning of the end for Kevin McCarthy

Friday 2 June 2023 09:00 , Eric Garcia

If House Speaker Kevin McCarthy has one defining trait, it’s his eagerness to please. He has used this acumen to compensate for his lack of policy wonkery and other skills associated with being an effective congressional leader.

When he led Republicans in California’s state legislature, he earned a reputation as someone who would keep his word with Democrats when the legislature needed to get a bill across the finish line.

When he came to Washington, one aide said he was “like your favorite fraternity brother” for his affability. And despite his dislike of Democrats’ investigation into the riot on January 6, last year, I overheard him talking with select committee member and then-Democratic congresswoman Stephanie Murphy about what type of dog to get for her family. He has cultivated relationships with California’s elite, befriending Elon Musk long before the Tesla executive shifted rightward, and serving as inspiration for Kevin Spacey’s character of Frank Underwood in House of Cards.

Read more:

The debt limit vote signals the beginning of the end for Kevin McCarthy

Lauren Boebert didn’t turn up to vote on debt ceiling deal she furiously campaigned against

Friday 2 June 2023 10:00 , Bevan Hurley

MAGA firebrand Lauren Boebert emerged as one of the fiercest critics to the debt ceiling deal brokered by House leader Kevin McCarthy and President Joe Biden to avoid a catastrophic default.

But when it was time for the House of Representatives to cast their votes on Wednesday night, she failed to show up.

Ms Boebert was mocked on social media after she reportedly “narrowly missed the vote, running up the steps right as they gaveled”, according to Axios Capitol Hill reporter Juliegrace Brufke.

Spencer Soicher, a reporter from Ms Boebert’s home state of Colorado, pointed out that she had made 23 Twitter posts in the past week voicing her displeasure with the compromise deal.

Democrat Adam Frisch, who in 2022 lost his bid to unseat Ms Boebert in Colorado’s third district by just 546 votes, wrote on Twitter: “How can you represent #CO03 when you don’t even show up? What was more important than voting?”

Read more:

Boebert didn’t turn up to vote on debt ceiling deal she furiously campaigned against

Global stocks recover after debt ceiling bill passed in US

Friday 2 June 2023 11:00 , Anna Wise, PA

Global shares clawed back gains on Thursday after the long-awaited US debt ceiling saga neared a conclusion.

Members of the House of Representatives, which is Republican controlled, passed a new bill which suspends the ceiling, and it is now heading to the Senate for final approval.

Global sentiment had been rocked over fears the nation would default on its own debt and not be able to pay any bills, with an economic impact that would be felt globally.

European markets edged higher and US investors were feeling more positive after sustaining significant losses earlier in the week, but it was a somewhat muted reaction to the debt ceiling breakthrough.

Mining stocks helped lift the FTSE 100 higher after a jump in oil and copper prices, but it still lagged below the 7,500 mark.

Read more:

Global stocks recover after debt ceiling bill passed in US

What is the US debt ceiling and why does it matter that lawmakers have reached a deal?

Friday 2 June 2023 12:00 , August Graham, PA

Shares inched higher in London on Thursday, and the pound made gains against the dollar, after US lawmakers in the House of representatives passed a new bill on the country’s debt ceiling.

The bill, which suspends the ceiling, passed with both Democrats and Republicans supporting it, and will head to the US Senate for the final approval.

The House – which is Republican controlled – had widely been seen as the bigger hurdle out of the two bodies of Congress.

By around 2pm, ahead of US markets opening, London’s FTSE 100 was trading up 0.2% at 7,462 points.

One pound could buy around 1.25 dollars, up one third of a per cent from the day before.

But what is the debt ceiling, and what might have happened if the US had hit it?

What is the US debt ceiling and why does it matter that lawmakers have reached a deal?

White House soft-pedals debt ceiling achievement to avoid pushing away GOP

Friday 2 June 2023 13:00 , Gustaf Kilander

White House staffers attempted to soft-pedal their agreement with House Speaker Kevin McCarthy, despite considering a major win, according to Politico.

Officials were concerned that any boasting about the agreement without prompt a Republican backlash and make it harder to pass.

Other than ensuring its passage, the Biden team also wanted to appear as the “adults in the room” in a highly partisan environment and use the negotiations as an outline for the 2024 reelection campaign.

Full story: Senate passes debt limit bill after marathon 11 amendment votes to avoid default

Friday 2 June 2023 13:30 , Oliver O'Connell

The Senate voted late on Thursday night to raise the debt limit and avoid allowing the United States to default on its debt for the first time in history after having an all-night marathon session of votes to assuage Republican concerns.

The legislation passed 63 to 36 after senators held 11 votes on amendments —10 from Republicans and 1 from Democrats — to address concerns about the bill.

Eric Garcia reports for The Independent from Capitol Hill.

Senate passes debt limit bill after marathon 11 amendment votes to avoid default

What is the debt ceiling rule?

Friday 2 June 2023 14:00 , August Graham, PA

The US introduced the debt limit in 1917 at what today looks like a tiny 11.5 billion dollars.

At the time, they set it up to make the process of borrowing money easier – until then Congress had to pass new legislation to approve all borrowing.

By instead putting a limit on borrowing, it allowed the executive branch of the Government more flexibility in what and when it borrowed, so long as it did not borrow more than the ceiling.

What’s in the cliffhanger deal struck by Biden and McCarthy?

Friday 2 June 2023 14:45 , Oliver O'Connell

Weeks of sniping back-and-forth between the White House and the Republican majority in the House of Representatives has finally yielded a deal: America will not default on its debt obligations.

Here’s what’s in the deal:

No more debt drama (for now)

The first and most significant achievement of this deal: it raises the debt ceiling through the end of 2024. That guarantees the GOP won’t be able to wage a fight over the issue again, particularly as the presidential campaign season heats up later this year and into the next.

Any debt ceiling battle during campaign season, particularly in the summer or fall of 2024, would take Joe Biden off the campaign trail and put his focus firmly on Washington at a time when either of his likely general election opponents, Donald Trump and Ron DeSantis, would be free to continue their politicking.

In total, the deal calls for raising America’s debt limit by $4 trillion. Signing away that leverage for the next year is already proving to be one of the toughest pills for congressional conservatives in both the House and Senate to swallow, especially given the lack of other major concessions in the pending legislation.

Friday 2 June 2023 15:15 , Oliver O'Connell

Spending caps

The GOP’s big win in the negotiating process, this legislation is set to freeze federal spending at the current level, with the exception of military funding, through 2024. And growth of that spending will be capped at 1 per cent if Congress cannot agree upon a stopgap spending deal in January of 2025.

This is a significant restriction for the federal government over the next year, and notably puts in place much stricter spending limits than members of Congress agreed to during the last debt limit fight in 2019.

The language allowing for defence spending to increase while domestic programmes face a spending freeze is already irking progressives, who have long argued that the US military’s bloated budget should be at the top of the list for reforms.

Caps set by this compromise are simultaneously the biggest victory for Republicans as well as their failure; while the spending caps are certainly more than what Democrats were demanding, they also eliminate the possibility of Republicans using the debt ceiling to make real cuts to programmes already implemented by the Biden administration as part of the Inflation Reduction Act and other legislation.

That means that Mr Biden’s 2021-2022 legislative agenda will remain largely intact, despite demands by conservatives to roll back huge parts of it, like efforts to forgive student loans or expand green energy production.

Watch: Schumer says debt deal got votes by beating back worst of GOP agenda

Friday 2 June 2023 15:27 , Oliver O'Connell

Read Biden’s reaction to passing of bill

Friday 2 June 2023 15:35 , Oliver O'Connell

President Joe Biden tweeted his reaction to the passing of the debt ceiling deal:

Just now, Senators from both parties voted to protect our hard-earned economic progress and prevent a first-ever default.

No one gets everything they want in a negotiation, but make no mistake: this bipartisan agreement is a big win for our economy and the American people.

Our work is far from finished, but I look forward to signing this bill into law as soon as possible and addressing the American people directly tomorrow.

Friday 2 June 2023 15:45 , Oliver O'Connell

Work requirements for food stamps

One of the GOP’s efforts to stem the tide of federal spending is centred around the issue of providing food assistance to low-income families. The new legislation is set to expand work requirements for the SNAP programme from the current age cap of 49 to a new cap of 54, meaning that Americans within that age bracket will have to prove employment to receive benefits.

The issue may seem oddly specific for Republicans to hold up America’s ability to pay its debts upon, but tightening the restrictions fo federal assistance has long been a target of the GOP, and originally the party wanted to expand those work requirements to Medicaid as well.

The new work requirements will sunset in 2030, unless extended before then by a GOP Congress.

Friday 2 June 2023 16:15 , Oliver O'Connell

IRS funding halted

The other specific ask that Republicans managed to secure in their compromise with the White House was a halt, at least in part, to a plan to fund new hiring initiatives at the Internal Revenue Service (IRS), America’s tax collection agency.

The beleaguered agency was set to receive more funding for agents that the federal government said were to assist taxpayers with filing issues and shore up the IRS’s capabilities; Republicans painted the issue instead as an effort to hire an army of IRS auditors to go after taxpayers for suspected fraud, a non-starter for the party that has long sought, particularly among its conservative wing, to diminish the power and capabilities of both the IRS and other federal agencies.

But some conservatives are already complaining that the cuts aren’t enough. Congressman Chip Roy exclaimed angrily after the deal was announced that “98 per cent” of the funding for the expansion of the IRS’s services would still go through.

Friday 2 June 2023 16:30 , Oliver O'Connell

Covid aid

The deal has one more minor win for Republicans — a provision to return Covid aid funding that has yet to be appropriated. Millions of dollars in this aid still remain unspent by the federal government, though Democrats have used it thus far to fund a number of federal health programmes which they warn could face cuts if the aid is rolled back entirely.

Why are some lawmakers angry about the debt ceiling deal?

Friday 2 June 2023 16:45 , Oliver O'Connell

The House of Representatives has voted to raise the debt limit, thereby ensuring the United States will avoid defaulting on its debt, despite vocal opposition from many Republicans in the House majority.

There was also disquiet amongst many Democrats.

Eric Garcia explains why.

Progressives and conservatives complain as Biden-McCarthy debt deal passes

Despite fierce opposition, Lauren Boebert didn’t turn up to vote on debt ceiling deal

Friday 2 June 2023 17:15 , Oliver O'Connell

MAGA firebrand Lauren Boebert emerged as one of the fiercest critics to the debt ceiling deal brokered by House leader Kevin McCarthy and President Joe Biden to avoid a catastrophic default.

But when it was time for the House of Representatives to cast their votes on Wednesday night, she failed to show up.

Bevan Hurley has the story.

Boebert didn’t turn up to vote on debt ceiling deal she furiously campaigned against

Full story: Senate passes debt limit bill after marathon 11 amendment votes to avoid default

Friday 2 June 2023 17:45 , Oliver O'Connell

The Senate voted late on Thursday night to raise the debt limit and avoid allowing the United States to default on its debt for the first time in history after having an all-night marathon session of votes to assuage Republican concerns.

The legislation passed 63 to 36 after senators held 11 votes on amendments —10 from Republicans and 1 from Democrats — to address concerns about the bill.

Eric Garcia reports for The Independent from Capitol Hill.

Senate passes debt limit bill after marathon 11 amendment votes to avoid default

Biden will address budget, debt agreement from Oval Office Friday evening

Friday 2 June 2023 18:30 , Oliver O'Connell

President Joe Biden planned to discuss the contentious, just-passed budget deal in a speech to the nation Friday night, ready to sign the agreement averting the country’s first-ever government default, which would have sent shock waves through the US and global economies.

The measure was approved late Thursday night after passing the House in yet another late session the night before.

Read more...

Deal approved, Biden will address budget, debt agreement from Oval Office Friday evening

Biden statement on May jobs report: 13 million jobs created since taking office

Friday 2 June 2023 18:55 , Oliver O'Connell

The White House released the following statement from President Joe Biden on the May jobs report:

Today is a good day for the American economy and American workers. We learned this morning that the economy created 339,000 jobs last month. We have now created over 13 million jobs since I took office. That is more jobs in 28 months than any President has created in an entire 4-year term. We also learned that the unemployment rate has been under 4 per cent for 16 months in a row. The last time our nation had such a long stretch of low unemployment was in the 1960s. And the share of working-age Americans in the workforce is at its highest level in 16 years. Meanwhile, the annual inflation rate has fallen for 10 months in a row, and it’s down more than 40 percent since last summer. During that time, take-home pay for workers has gone up, even after accounting for inflation. In short, the Biden economic plan is working. And due to the historic action taken by Congress this week, my economic plan will continue to deliver good jobs for the American people in communities throughout the country. I look forward to signing the bipartisan budget agreement into law. The agreement protects our historic and hard-earned economic recovery, and all the progress that American workers have made in the last two years. And it protects key priorities and accomplishments from the last two years. Our work is far from finished, but this agreement is a reminder of what’s possible when we act in the best interests of our country.

Underestimated McCarthy emerges from debt deal empowered as speaker

Friday 2 June 2023 22:13 , Oliver O'Connell

House Speaker Kevin McCarthy is nothing if not a political survivor.

Underestimated from the start, the Republican who cruised around his California hometown of Bakersfield and stumbled into a career in Congress was never taken too seriously by the Washington establishment.

With overwhelming House passage of the debt ceiling and budget deal he negotiated with President Joe Biden, the emergent speaker proved the naysayers and eye-rollers otherwise. A relentless force, he pushed a reluctant White House to the negotiating table and delivered the votes from his balky House GOP majority to seal the deal.

Underestimated McCarthy emerges from debt deal empowered as speaker, still threatened by far right

Debt ceiling deal aside, Fitch still has negative ratings watch for US

Friday 2 June 2023 19:30 , Oliver O'Connell

The ratings agency cited the “steady deterioration in governance over the last 15 years”.

Ouch.

Biden readies veto as Senate passes GOP bill overturning student loan cancellation

Friday 2 June 2023 20:15 , Oliver O'Connell

A Republican measure overturning President Joe Biden‘s student loan cancellation plan passed the Senate on Thursday and now awaits an expected veto.

The vote was 52-46, with support from Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana as well as Arizona Sen. Kyrsten Sinema, an independent. The resolution was approved last week by the GOP-controlled House by a 218-203 vote.

Biden has pledged to keep in place his commitment to cancel up to $20,000 in federal student loans for 43 million people. The legislation adds to Republican criticism of the plan, which was halted in November in response to lawsuits from conservative opponents.

Read more...

Senate passes GOP bill overturning student loan cancellation, teeing it up for Biden veto

Voices: Maybe, just maybe, ‘Sleepy Joe’ Biden is good at this bipartisan negotiation stuff

Friday 2 June 2023 20:36 , Oliver O'Connell

Eric Garcia writes:

To be sure, Mr Biden is the oldest person to ever occupy the Oval Office and his penchant for making nonsensical comments goes back to when he was the youngest Senator ever elected in recent history in 1972.

But given the fact that Mr Biden will have a debt limit increase head to his desk for his signature after a high-stakes few weeks of negotiations, perhaps it is time for his conservative critics to admit that the president actually knows what he is doing when it comes to working with the legislative branch and Congress as a whole.

Read more...

Maybe, just maybe, ‘Sleepy Joe’ Biden is good at this bipartisan negotiation stuff

Still threatened by far right, underestimated McCarthy emerges from debt deal empowered as speaker

Friday 2 June 2023 21:00 , Oliver O'Connell

House Speaker Kevin McCarthy is nothing if not a political survivor.

Underestimated from the start, the Republican who cruised around his California hometown of Bakersfield and stumbled into a career in Congress was never taken too seriously by the Washington establishment.

With overwhelming House passage of the debt ceiling and budget deal he negotiated with President Joe Biden, the emergent speaker proved the naysayers and eye-rollers otherwise. A relentless force, he pushed a reluctant White House to the negotiating table and delivered the votes from his balky House GOP majority to seal the deal.

Read more:

Underestimated McCarthy emerges from debt deal empowered as speaker, still threatened by far right

Biden to address nation at 7pm

Friday 2 June 2023 21:15 , Oliver O'Connell

How Biden and McCarthy struck a debt-limit deal

Friday 2 June 2023 21:45 , Oliver O'Connell

It was advice that Mitch McConnell had offered to Joe Biden once already: To resolve the debt-limit standoff, he needed to strike a deal with House Speaker Kevin McCarthy — and McCarthy alone. But after a first meeting of the top four congressional leaders with the president in early May, the Senate minority leader felt the need to reemphasize his counsel.

After returning from the White House that day, McConnell called the president to privately urge him to “shrink the room” – meaning no direct involvement in the talks for himself, Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.

That, McConnell stressed to Biden, was the only way to avert a potentially economy-rattling default.

Read more...

'Shrink the room:' How Biden and McCarthy struck a debt-limit deal and staved off a catastrophe

ICYMI: Boebert didn’t turn up to vote on debt ceiling deal she furiously campaigned against

Friday 2 June 2023 22:30 , Oliver O'Connell

MAGA firebrand Lauren Boebert emerged as one of the fiercest critics to the debt ceiling deal brokered by House leader Kevin McCarthy and President Joe Biden to avoid a catastrophic default.

But when it was time for the House of Representatives to cast their votes on Wednesday night, she failed to show up.

Ms Boebert was mocked on social media after she reportedly “narrowly missed the vote, running up the steps right as they gaveled”, according to Axios Capitol Hill reporter Juliegrace Brufke.

Read more...

Boebert didn’t turn up to vote on debt ceiling deal she furiously campaigned against

Coming up: Biden to address budget, debt agreement from Oval Office

Friday 2 June 2023 23:15 , Oliver O'Connell

President Joe Biden planned to discuss the contentious, just-passed budget deal in a speech to the nation Friday night, ready to sign the agreement averting the country’s first-ever government default, which would have sent shock waves through the US and global economies.

Read more...

Deal approved, Biden will address budget, debt agreement from Oval Office Friday evening

Anti-poverty groups and progressives blast work requirements for aid to poor Americans

Friday 2 June 2023 23:45 , Oliver O'Connell

An agreement to raise the debt ceiling would expand the age bracket for eligibility for food assistance, adding a punitive and unnecessary barrier for poor Americans with only negligible savings for the federal government, advocacy groups have warned.

Most Americans with low or no incomes who qualify for the Supplemental Nutrition Assistance Program (SNAP) must comply with certain work requirements to be eligible to receive funds to help pay for groceries. But under a deal struck between President Joe Biden and Republican House Speaker Kevin McCarthy, adults up to age 54 would be required to show proof of work.

Alex Woodward has the story.

Anti-poverty groups blast work requirements for aid to poor Americans in debt deal

Biden addresses the nation and touts debt limit agreement in primetime speech

Saturday 3 June 2023 00:05 , Graeme Massie

President’s first formal Oval Office address comes as he signed bipartisan legislation to avert a default on America’s sovereign debt.

Biden addresses the nation and touts debt limit agreement in primetime speech

Biden addresses nation from Oval Office ahead of signing debt limit bill

Saturday 3 June 2023 00:10 , Graeme Massie

Biden insists he will make wealthy ‘pay their share'

Saturday 3 June 2023 00:17 , Graeme Massie

“Republicans may not like it, but I’m gonna make sure the wealthy pay their fair share,” he said during a Friday evening address to the nation from the Oval Office.

Ted Cruz admits Biden got GOP to ‘roll over’ for him

01:22 , Graeme Massie

“There’s a reason that Biden and the Democrats are popping champagne and celebrating, they got Republican leadership to roll over… almost all of the spending cuts House Republicans initially passed, The Biden White House succeeded in getting stripped from this bill,” the US Senator from Texas admitted on Newsmax.

ICYMI: Senate passes debt limit bill after marathon 11 amendment votes to avoid default

02:00 , Oliver O'Connell

The Senate voted late on Thursday night to raise the debt limit and avoid allowing the United States to default on its debt for the first time in history after having an all-night marathon session of votes to assuage Republican concerns.

Senate passes debt limit bill after marathon 11 amendment votes to avoid default

How Biden and McCarthy struck a debt-limit deal

04:00 , Oliver O'Connell

It was advice that Mitch McConnell had offered to Joe Biden once already: To resolve the debt-limit standoff, he needed to strike a deal with House Speaker Kevin McCarthy — and McCarthy alone. But after a first meeting of the top four congressional leaders with the president in early May, the Senate minority leader felt the need to reemphasize his counsel.

After returning from the White House that day, McConnell called the president to privately urge him to “shrink the room” – meaning no direct involvement in the talks for himself, Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.

That, McConnell stressed to Biden, was the only way to avert a potentially economy-rattling default.

Read more...

'Shrink the room:' How Biden and McCarthy struck a debt-limit deal and staved off a catastrophe

Underestimated McCarthy emerges from debt deal empowered as speaker

07:00 , Oliver O'Connell

House Speaker Kevin McCarthy is nothing if not a political survivor.

Underestimated from the start, the Republican who cruised around his California hometown of Bakersfield and stumbled into a career in Congress was never taken too seriously by the Washington establishment.

With overwhelming House passage of the debt ceiling and budget deal he negotiated with President Joe Biden, the emergent speaker proved the naysayers and eye-rollers otherwise. A relentless force, he pushed a reluctant White House to the negotiating table and delivered the votes from his balky House GOP majority to seal the deal.

Underestimated McCarthy emerges from debt deal empowered as speaker, still threatened by far right

Biden and McCarthy’s debt limit deal went through – but there are winners and losers

10:00 , Oliver O'Connell

The House of Representatives voted on Wednesday evening to raise the debt limit, with more Democrats voting to raise the limit than Republicans, and all but guaranteeing its passage in the United States Senate.

The vote served as a triumph for House Republicans as they moved the White House from initially wanting to have a clean debt limit increase to agreeing to some spending cuts. But 71 Republicans still opposed the agreement negotiated by the Biden administration and Reps Patrick McHenry (R-NC) and Garret Graves (R-LA).

Senate Majority Leader Chuck Schumer has said he hopes to pass the legislation quickly and before 5 June, when the Treasury Department says the United States will be unable to fulfill its debt obligations and risk defaulting on its debt.

This was the first major test for House Republicans’ resolve since they took control of the lower chamber in January after a protracted series of votes to get a speaker. Some conservatives crowed that the bill did not go far enough in spending cuts while House Republican leaders say they forced the White House’s hand. Conversely, progressive Democrats criticised the deal for putting in place work requirements for social welfare programs.

These are the winners and losers of the debt limit standoff.

Biden and McCarthy’s debt limit deal went through – but there are winners and losers

What’s in the cliffhanger deal struck by Biden and McCarthy?

12:00 , Oliver O'Connell

Let’s take a look at what leaders in Washington have come up with to break the deadlock.

What’s in the cliffhanger deal struck by Biden and McCarthy to raise the debt limit?

How the debt deal angered both progressives and conservatives

14:00 , Oliver O'Connell

Eric Garcia explains.

Progressives and conservatives complain as Biden-McCarthy debt deal passes

Democrats frustrated by debt deal imposing new work requirements for food aid

15:53 , Associated Press

Democrats are deeply conflicted about the food aid requirements that President Joe Biden negotiated as part of the debt ceiling deal, fearing damage has been done to safety net programs that will be difficult to unravel in the years ahead as Republicans demand further cuts.

Bargaining over toughening work requirements for the Supplemental Nutrition Assistance Program, commonly known as food stamps, became the focal point for the White House and House Speaker Kevin McCarthy, R-Calif., up until the end. Negotiators from both sides made clear, publicly and privately, that it was the biggest area of disagreement and almost led to the talks breaking down several times.

In the end, Democrats warily accepted new requirements for some able-bodied recipients in exchange for food aid. Republicans agreed to drop some work requirements for veterans, homeless people and others.

The result of the tense back-and-forth was a deal that played to both sides, but one that many Democrats agonized over as they weighed whether to vote for the package this past week. Many struggled to square cutting access to food for marginalized communities with an outcome that allowed the United States to avoid defaulting on its debt.

Read more from the Associated Press:

Debt deal imposes new work requirements for food aid and that frustrates many Democrats

What happens next with debt ceiling bill?

17:25 , Megan Sheets

Following its passage through the House and Senate this week, the Fiscal Responsibility Act is all but set in stone.

The only step left is getting a signature from President Joe Biden, who hailed the deal in a primetime address on Friday night.

“Passing this budget agreement was critical. The stakes could not have been higher,” he said, just moments after he told Americans that the goals of the agreement — “keeping the full, faith, and credit of the United States” and enacting “a budget that continues to grow our economy and reflects our values as a nation” – are “essential” to continuing the progress made during the first two years of his presidency.

Mr Biden indicated that he will sign the bill sometime on Saturday.

Biden signs debt limit bill

19:06 , Megan Sheets

President Joe Biden has now signed the debt ceiling bill, averting a potentially catastrophic default.

The White House announced the signing, which was done in private at the White House, in an emailed statement in which Biden thanked congressional leaders for their partnership.