US House passes 2-year budget, debt ceiling deal

US House passes 2-year budget, debt ceiling deal

Agency News

Washington, Jul 26: The US House of Representatives passed a budget deal on Thursday that would raise spending limits by dollar 320 billion and suspend the debt limit until mid-2021.

The House passed the bill by a vote of 284 to 119. The measure now heads to the Senate, where it is expected to pass next week. If passed by the Senate, the proposed bill will be sent to President Donald Trump's desk for signature.

US President Donald Trump applauded the bipartisan effort and said "I am pleased to announce the House has passed our budget deal. Great for our Military and our Vets. A big thank you!".

The bipartisan deal, struck between the White House and Congress on Monday, covers fiscal years 2020 and 2021, and would raise overall spending levels by 320 billion US dollars above the strict limits set in 2011.

It would also suspend the federal debt ceiling until July 31, 2021, preventing the United States from defaulting on its payment obligations. The Treasury Department has estimated that a potential default could have happened as soon as early September.

The deal also sets top-line levels for defence and non-defense spending for the next two fiscal years. It establishes a dollar 1.37 trillion budget agreement in the first year, with dollar 738 billion for defence spending and dollar 632 billion in non-defence spending for fiscal year 2020. (UNI)