US House of Representatives passes debt-limit bill

August 2nd, 2011 - 9:47 am ICT by IANS  

Washington, Aug 2 (IANS/RIA Novosti) The US House of Representatives approved Monday a deal struck between the White House and congressional leaders that would raise the nation’s debt ceiling by at least $2.1 trillion from the current $14.3 trillion.

The House lawmakers voted 269-161 in favour of the measure and sent it to the Senate for final congressional approval.

In addition to raising the debt ceiling, the crucial agreement cuts about $1 trillion in federal spending over a decade and establishes a bipartisan committee to report by November with a proposal to reduce the US deficit by another $1.5 trillion.

The deal needs to pass both houses of Congress to become law. The Senate is expected to vote Tuesday. Republicans, who control the House of Representatives, and Democrats, who control the Senate, were locked in a political impasse over the US debt ceiling for weeks, fuelling fears about a potential collapse of the US economy and a subsequent turmoil on the global markets.

–IANS/RIA Novosti
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