Home Markets House Democrats approve lifting US debt ceiling and averting government shutdown

House Democrats approve lifting US debt ceiling and averting government shutdown

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US budget updates

The Democratic-controlled US House of Representatives passed a bill to avert a government shutdown on October 1 and extend the US debt limit until December next year, setting up a high-stakes stand-off with Republicans that risks spiralling into a full-blown fiscal crisis.

The party-line vote on Tuesday night, with 220 Democrats voting in favour of the bill and 211 Republicans opposing it, highlights the deep polarisation in Congress over the most basic budgetary policies.

The proposed legislation passed by the House is highly unlikely to be approved by the Senate, where at least 10 Republicans would need to support it in order to advance.

If the stand-off over government funding remains unresolved by the end of the month it would lead to the closure of many federal operations on October 1 — and if no compromise is reached on the…

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