A landmark deal to raise the US debt ceiling has been voted on by the House of Representatives.
The deal – which aims to avert a potentially catastrophic scenario in which the United States would default on its national debts – passed through the Republican-majority House.
The proposal, passed in the House with 314 votes against 117, will now go to the Senate. Senate Majority Leader Chuck Schumer has promised to move quickly to pass the bill.
The main aim of the deal is to raise the US debt limit from $31.4 trillion (£25.3 trillion), which it does by suspending the debt limit until January 2025 rather than setting a new level.
It also avoids a situation where the United States defaults on its national debts, a scenario that could have huge impacts for both the United States and the world economy at large.
US Treasury Secretary Janet Yellen previously warned that without an agreement to suspend the debt ceiling, the US would not have enough money to meet all of its financial obligations by June 5.
Wednesday’s vote comes after the president Joe Biden and House Leader Speaker Kevin McCarthy reached an agreement on the country’s debt ceiling.
To secure the deal, Democrats were forced to make concessions to typically pro-small-state Republicans, including spending cuts and policy concessions.
In a speech before the vote, McCarthy praised the bill’s budget cuts, which he said were needed to curb Washington’s “runaway spending.”