US. Speaker of the House Nancy Pelosi, a California Democrat, speaks at a press conference on Wednesday, July 17, 2019, on Capitol Hill, Washington, DC, USA.
Al Drago | Bloomberg | Getty Images
On Thursday, the House of Representatives passed a bill to raise the US debt ceiling and set the budget level for two years to avoid a catastrophe that threatens to upset the economy.
The Democrat-led Chamber agreed to the measure in a 284-1
The bill provides for discretionary expenditures of $ 1.37 trillion for the fiscal year 2020 and slightly higher levels for the fiscal year 2021.
The House voted for two years to send the measure to the Senate, which is expected to say goodbye in the coming days and send it to Trump's desk. The President is expected to sign it.
Congress hoped to lift the debt ceiling before September when Secretary of the Treasury Steven Mnuchin warned the US that the US could no longer afford to pay its bills. This prospect risked a debt default that would shake the US economy and the global economy.
Adoption of the bill will also avoid any general spending cuts next year. Congress still has to adopt separate proposals for funding to avoid closure of the government before funding expires at the end of September.
Both Democratic and Republican Congress chairmen have secured what they call victories in the agreement. This includes broad equality in spending increases for defense and domestic non-defense programs.
However, some legislators and supporters of federal budgetary restrictions have hit the deal as annual budget deficits are projected to exceed $ 1 trillion in the coming years. Republican tax cuts and spending increases supported by both parties have contributed to the growing deficits.
On Thursday, Trump urged Republicans on the House of Representatives to support the legislation. Some conservative GOP members criticized the deal in part because it ended the sequestration permanently.
"The Republicans of the House should support the TWO-YEAR BUDGET AGREEMENT, which greatly aids our military and veterinarians, and I am fully with you!" the president tweeted.
His push did not seem to influence the conservative House Freedom Caucus. In a statement published on Thursday afternoon in USA Today, the group criticized the agreement.
The Caucus called it "profoundly flawed" and said that Congress should work to develop a budget agreement that would responsibly reduce spending and set the country on track to fiscal solvency.
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