There will be no default – the American leader signed a law suspending the national debt limit until January 1, 2025.
US President Joe Biden signed into law a $31.4 trillion government debt limit to prevent default. This was reported by the press service of the White House.
Suspending the debt limit until January 1, 2025 removes the threat of default until next year’s presidential election.
In addition to addressing the debt ceiling issue, the law limits non-defense spending, expands work requirements for some food stamp recipients, and refunds some of the funds for COVID-19 relief , among other policy provisions.
It will be recalled that the House of Representatives and the Senate passed the law after Biden and Speaker of the House Kevin McCarthy came to an agreement after tense negotiations.
The US Treasury Department has warned that it will not be able to pay all of its bills by June 5 unless Congress acts by then.
Source: korrespondent
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