BREAKING NEWS: Biden signs debt ceiling bill, pushing limit to 2025 and averting government default after months-long battle with Republicans

President Joe Biden on Saturday signed a bill that lifts the US government’s $31.4 trillion debt ceiling, averting what would have been a first-ever default.

The House of Representatives and the Senate passed the legislation this week after Biden and House Speaker Kevin McCarthy reached an agreement following tense negotiations.

The Treasury Department had warned it would be unable to pay all its bills on Monday if Congress failed to act by then, which would have triggered an unprecedented default.

The White House released a 10-second video clip of the bill signing, but opted to avoid the type of public ceremony that often accompanies the signing of hard-fought measures.

President Joe Biden on Saturday signed a bill that lifts the US government’s $31.4 trillion debt ceiling, averting what would have been a first-ever default

Republicans had refused to raise the country´s borrowing limit unless Democrats agreed to cut spending, leading to a standoff that was not resolved until weeks of intense negotiations between the White House and McCarthy.

The final agreement, passed by the House on Wednesday and the Senate on Thursday, suspends the debt limit until 2025 – after the next presidential election – and restricts government spending. 

It gives lawmakers budget targets for the next two years in hopes of assuring fiscal stability as the political season heats up.

Raising the nation’s debt limit, now at $31.4 trillion, will ensure that the government can borrow to pay debts already incurred.

Developing story, more to follow. 

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