US President Joe Biden signed a bill to raise the national debt limit on Saturday, that suspends the U.S. government’s debt limit through January 2025 and places spending limits in fiscal years 2024 and 2025. The final bill was passed by the House on Wednesday and the Senate on Thursday. The bill was passed as a result of weeks of tough negotiations between Democrats and Republicans.

Biden signed the bill just days before Treasury officials warned the department would run out of money to pay the nation’s bills otherwise the situation could have triggered an unprecedented default on U.S. debt obligations. The nation's debt is currently around $31 trillion, more than 120 percent of its annual GDP. The default would have likely triggered market panic, a recession, and millions of job losses.

Overall, the 99-page bill restricts spending for the next two years and changes some policies. The bill allows the government to continue to borrow more money over the next 19 months to meet its obligations and exceeding the current debt limit.

"The stakes could not have been higher. If we had failed to reach an agreement on the budget, there were extreme voices threatening to take America, for the first time in our 247-year history, into default on our national debt” - US President Joe Biden said. Biden also praised McCarthy and his negotiators for operating in good faith, and all congressional leaders for ensuring swift passage of the legislation. “They acted responsibly, and put the good of the country ahead of politics,” he said.

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