U.S. President Joe Biden signed the federal government debt ceiling increase agreement (Fiscal Responsibility Act 2023) on the 3rd (local time), the White House announced. This came just two days before the Treasury Department's warning on the 5th that the country could face a default (debt default).
The agreement postpones the application of the federal government debt ceiling until January 2025, after the U.S. presidential election, while maintaining non-defense spending at a freeze level for the 2024 fiscal year starting in October this year, and increasing defense spending by about 3%.
The agreement, which passed the House on the 31st of last month and the Senate on the 1st, became effective with President Biden's signature. This resolves default concerns for two years.
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