Biden averts economic collapse, praises Republicans in Oval Office address

In his first Oval Office address to the nation, President Joe Biden announced that raising the US borrowing limit has prevented an “economic collapse.” He is set to sign the bill into law after it received bipartisan support in Congress. In a rare show of appreciation, the Democratic president commended his Republican counterparts for their good faith efforts. He warned that a US default on its US$31.4tn debt by Monday’s deadline would have resulted in a “catastrophic” outcome.

Typically, speeches from the Oval Office address major crises such as wars or natural disasters. Over the past weeks, the White House and Republicans have been engaged in discussions regarding the details of the deal, with uncertainty surrounding the package’s finalisation before the US government ran out of money on June 5. The bill was passed 63-36 in the Senate on Thursday night, following its successful clearance in the House of Representatives the previous day.

President Biden praised congressional leaders, including Republican Speaker of the House Kevin McCarthy and Republican Senate leader Mitch McConnell. “They acted responsibly, and put the good of the country ahead of politics,” said Biden, who is running for re-election in 2024.

The deal suspends the debt limit until January 1, 2025, and imposes a cap on non-defence spending. It also expands work requirements for food and healthcare assistance, among other provisions. Additionally, the legislation will increase full funding for military veterans’ medical care, in line with what President Biden had sought.

According to the independent Congressional Budget Office, the legislation will result in US$1.5tn in savings over a decade. Although the bill was largely bipartisan, some Republicans argued that it did not go far enough with cuts, while some Democrats believed it went too far.