Biden approved the Fiscal Responsibility Bill, which was agreed upon after lengthy negotiations between the White House and Republicans.
Thus, by increasing the debt limit, the federal government was prevented from running short of cash and going into default.
The US reached the debt limit of 31.4 trillion dollars on January 19, and the US Treasury began to take extraordinary measures to avoid exceeding the limit and to prevent a possible default.
Unless Congress raises or suspends the debt limit by June 5, it was estimated that the Treasury would be short of resources to meet its obligations.
After long negotiations on the debt limit, an agreement was reached last week and the bill was presented to Congress.
The Financial Responsibility Bill was passed in the House of Representatives with 314 votes to 117, and passed the Senate with 63 “yes” votes to 36 “no” votes.