US debt ceiling deal – what’s in it

Kevin McCarthy and Joe Biden

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The two parties finally reached a deal after weeks of trying

President Joe Biden has urged Congress to pass a deal to raise the government’s borrowing limit and prevent a potentially catastrophic default on US debt repayments. So what is in the deal?

Negotiators from Democratic and Republican parties finalised an agreement on Sunday night.

If approved, it would allow the federal government to borrow money until well after the next presidential election due in November 2024.

Voting on the proposed deal, which was posted to a congressional website, is set to start later this week in the House and the Senate.

Here are the highlights from the package of measures.

Debt ceiling suspended until 2025

Every so often, US Congress must vote to raise or suspend the ceiling, so it can borrow more to pay its bills. Currently it is $31.4tn (£25tn).

This includes paying for federal employees, the military, Social Security and Medicare, as well as interest on the…