Legislation to suspend US debt limit advances, crucial vote expected tomorrow

Legislation aimed at suspending the US debt limit and implementing new federal spending cuts, negotiated by President Joe Biden and House Speaker Kevin McCarthy, made significant progress as it cleared a crucial hurdle late on Tuesday. The bill now moves on to the full House of Representatives for deliberation and an anticipated vote on Wednesday.

The House Rules Committee voted 7-6 in favour of approving the rules that would allow comprehensive debate within the entire chamber. Notably, two committee Republicans, Representatives Chip Roy and Ralph Norman broke ranks with their party leadership by opposing the proposed legislation. This opposition highlights the necessity for Democrats to support the bill's passage in the House, where Republicans maintain a slim majority of 222-213.

Once passed by the House, the bill will be sent to the Senate for further consideration. Congressional approval is required before June 5, as the Treasury Department faces the risk of running out of funds to fulfil its financial obligations for the first time in US history.

The potential failure to meet these obligations by the Treasury Department could have severe repercussions, triggering economic turmoil not only within the United States but also across global economies.