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US House passes temporary debt ceiling rise | |
(35 minutes later) | |
The US House has passed a bill to extend the country's debt limit until May, deferring a budget debate with the White House. | The US House has passed a bill to extend the country's debt limit until May, deferring a budget debate with the White House. |
The proposal, passed in a 285-144 vote, also requires lawmakers to pass a budget by mid-April or forgo pay. | |
Senate Majority Leader Harry Reid has said the upper chamber would quickly pass the debt-limit bill, moving it to the president for final approval. | Senate Majority Leader Harry Reid has said the upper chamber would quickly pass the debt-limit bill, moving it to the president for final approval. |
White House spokesman Jay Carney called the vote a "welcome development". | White House spokesman Jay Carney called the vote a "welcome development". |
The Obama administration said on Tuesday the president would not block a short-term extension if it passed Congress. | The Obama administration said on Tuesday the president would not block a short-term extension if it passed Congress. |
'No budget, no pay' | 'No budget, no pay' |
The US Treasury is approaching its $16.4tn (£10.3tn) debt limit, and Congress must allow it to borrow more money. | The US Treasury is approaching its $16.4tn (£10.3tn) debt limit, and Congress must allow it to borrow more money. |
Wednesday's bill would extend the federal borrowing authority until 18 May. | Wednesday's bill would extend the federal borrowing authority until 18 May. |
Republicans added a clause to the bill to keep lawmakers from collecting their salaries if they do not pass a budget by 15 April. | |
Crisis jargon buster Use the dropdown for easy-to-understand explanations of key financial terms: AAA-rating The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is minuscule. Glossary in full | |
The US has not passed a full budget plan in four years, instead maintaining the government's spending through a series of stop-gap bills, the latest of which is set to expire on 27 March. | The US has not passed a full budget plan in four years, instead maintaining the government's spending through a series of stop-gap bills, the latest of which is set to expire on 27 March. |
"We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government's spending problem," Republican House Speaker John Boehner told lawmakers. | "We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government's spending problem," Republican House Speaker John Boehner told lawmakers. |
"The principle is simple: 'no budget, no pay."' | "The principle is simple: 'no budget, no pay."' |
Republicans had previously threatened not to pass an increase in the debt limit unless it was paired with spending cuts. | Republicans had previously threatened not to pass an increase in the debt limit unless it was paired with spending cuts. |
But President Obama refused to negotiate, demanding that lawmakers pass an unconditional debt-limit increase. | |
The vote comes less than three weeks after Congress and the White House struck a last-minute deal to prevent the so-called fiscal cliff of sharp spending cuts and tax increases. | The vote comes less than three weeks after Congress and the White House struck a last-minute deal to prevent the so-called fiscal cliff of sharp spending cuts and tax increases. |
The spending cuts were the result of the last debt-ceiling stand-off. The White House and Congress are expected to clash again over the ultimate outcome of those cuts, delayed for two months. | The spending cuts were the result of the last debt-ceiling stand-off. The White House and Congress are expected to clash again over the ultimate outcome of those cuts, delayed for two months. |
The last debt-ceiling battle between Congress and President Barack Obama ended in July 2011, after bringing the nation close to default, resulting in a credit-rating downgrade and financial market turmoil. |
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