(MENAFN) The US House of Representatives passed a Republican bill late Wednesday to increase the debt limit and trim government spending. The bill received a narrow vote of 217-215, with four Republicans joining the Democrats against party lines, while every Democrat voted against it. The bill was a victory for House Speaker Kevin McCarthy, a Republican from California, who had proposed raising the US debt limit by USD1.5 trillion to avoid a default for the world's biggest economy.

Treasury Secretary Janet Yellen has repeatedly urged Congress in recent months to suspend or raise the debt limit to avoid a default on government obligations. The American economy hit its debt ceiling on Jan. 19, and Yellen said her agency has started taking "extraordinary measures" to avoid a default. The US has never defaulted on its debt, while the debt ceiling has been raised 22 times between 1997 and 2022.

The passing of the bill has been met with criticism from the White House. White House Press Secretary Karine Jean-Pierre said in a statement that the bill by House Republicans "cuts veterans’ healthcare, education, Meals on Wheels and public safety, takes away healthcare from millions of Americans and sends manufacturing jobs overseas." She further stated that President Joe Biden would never force middle-class and working families to bear the burden of tax cuts for the wealthiest, as this bill does. The President has made it clear that this bill has no chance of becoming law.

While the Republicans see their bill as a way to address the looming debt crisis, Democrats have criticized the proposed spending cuts. The party has also accused the Republicans of using the debt ceiling as a bargaining chip to push through their agenda. The Democrats have been pushing for a clean debt limit increase with no conditions attached.

As the bill moves to the Senate, it remains to be seen how it will be received by the Democrats who hold a slim majority. The issue of raising the debt limit is a contentious one, and its resolution is crucial in avoiding a potential default on US government obligations.

MENAFN27042023000045014228ID1106111408