President Biden signs law to help US officially escape default

President Biden speaks at the White House about the law to help the US avoid bankruptcy

The Washington Post reported that US President Joe Biden has just signed a law suspending the debt ceiling, helping the country avoid the risk of default that the US Treasury Department predicted would occur on June 5.

Signing the bill at the White House on June 3 (local time), the leader said that in addition to preventing the serious financial consequences of default, the law will help maintain the benefits of the wide-ranging agenda he has promoted in the first two years of his term.

The legislation also helps bolster what could be a central argument in Mr. Biden’s upcoming campaign that he is an experienced leader capable of delivering results in a polarized country.

"Passing this budget deal is so important. No one got everything they wanted, but the American people got what they needed. We reversed a crisis and an economic collapse," he said.

US reaches debt ceiling agreement

In a statement, the US government thanked the leaders of both parties in the House and Senate. However, the White House decided that there would be no celebration, which is usually held when laws are enacted after a period of intense negotiations.

The new law allows the US government to suspend the $31.4 trillion debt ceiling for two years through January 1, 2025, in exchange for controlling spending during that time.

Passing the budget deal gives Mr Biden the advantage of being able to postpone any debt ceiling stalemate until after the 2024 election.

Previously, the debt ceiling bill was passed in the House of Representatives on May 31 with a vote of 314-117 and passed in the Senate a day later with a vote of 63-36.

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