U.S. House approves debt limit increase

U.S. House approves debt limit increase

The House of Representatives on Tuesday approved legislation to raise the U.S. debt limit, the final legislative hurdle to averting a first-ever national default that was otherwise expected to occur next week.

The bill, passed by the Senate last week, now travels to President Joe Biden’s desk for his signature and enactment. He is expected to sign it later this week and likely Wednesday.

The legislation, which cleared the House with a party-line vote of 219-206, is the result of an agreement between congressional Democrats and Senate Minority Leader Mitch McConnell, R-Ky., and would extend the debt ceiling by $480 billion. 

The current national debt is $28.4 trillion and would be permitted to rise to about $28.8 trillion, CNBC reported.

While the president is widely expected to sign the bill, failure to do so would result in economic calamity by Oct. 18, Treasury Secretary Janet Yellen has warned.