Crunch deal to raise US debt ceiling passes through House of Representatives

Published

2 years ago

June 1, 2023

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A crunch deal to raise the US debt ceiling has been voted through by the House of Representatives.

The agreement – which aims to avert a potentially catastrophic scenario where the US defaults on its national debts – passed through the Republican-majority House by 314 to 117 votes.

The proposal will now move to the Senate. The Senate’s majority leader, Chuck Schumer, has vowed to move quickly to pass the bill.

It needs to be on President Joe Biden’s desk by Monday’s deadline – the point at which the US federal government is expected to run out of money to pay its bills.

“This agreement is good news for the American people and the American economy,” Mr Biden said after the vote.

“I urge the Senate to pass it as quickly as possible so that I can sign it into law.”

What is the debt limit – and why does it matter?

The main aim of the deal is to increase the US debt limit from $31.4trn (£25.3trn) – which it achieves by suspending the borrowing limit until January 2025 rather than setting a new level.

It also averts a situation where the US defaults on its national debts – a scenario that would have huge impacts both for the US and the wider world economy.

US Treasury secretary Janet Yellen previously warned that without a deal to suspend the debt ceiling, the US would not have enough money to meet all of its financial obligations by 5 June.

That would mean civil servant wages, social welfare payments, and health insurance would go unpaid.

Crisis gets kicked down the road – but is a ‘moment of reckoning’ to come?

American politics has a strange ability to create a sort of manufactured jeopardy, which then has the prospect of becoming a self-fulfilling prophecy.

Few really believe that the country’s politicians will actually allow the nation to default for the first time in its history.

But this game of chicken is going to the wire – both sides unwilling to move, even to negotiate, until the last minute to eke out concessions.

And to be clear, it is a game which can go wrong – and if a default did happen, it would be a global crisis.

The vote overnight, for the deal – to raise the debt ceiling – means the crisis is a little closer to being avoided.

Congressmen and women found consensus in a deeply divided house to vote for the deal which had been hammered out by President Biden and his political foe, House speaker Kevin McCarthy, over the past few days. It passed 314 to 117.

But in their pre-vote speeches, it was clear that many, many politicians have deep reservations about the level of unsustainable debt.

Yes, they were relieved that the deal allows bills to be paid, it protects the country’s credit rating, medical care is protected as is social security.

But, “a moment of reckoning is coming”, one Republican warned. Another said the level of debt is “totally unsustainable and irresponsible”.

Some Republicans celebrated concessions they got, which will impose spending caps and place checks and balances on the executive branch of government.

But the consensus was that it wasn’t perfect or even good for anyone. But that’s the price of such divided politics.

The bill now heads to senators. They may want amendments, but are likely to pass it. Crisis is then averted. This game of chicken over. Debt ceiling raised. Can kicked down the road.

If the US no longer pays interest on its bonds – IOUs it issued to raise funds – it would default on debt payments and its credit rating would fall.

A vital way the country raises money – selling bonds – would also be at risk due to the insecurity will markets would charge more to lend to the US.

Economists warn that a prolonged period where the US cannot pay its bills would lead to a nearly 20% drop in stock prices – and an economic contraction of up to 4%.

Bipartisan deal

Wednesday’s vote comes after Mr Biden and leader of the House of Representatives, speaker Kevin McCarthy, reached an agreement over the country’s debt ceiling.

In order to secure the agreement, the Democrats were forced to make concessions to the typically pro-small-state Republicans, including spending cuts and policy concessions.

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In a speech before the vote, Mr McCarthy praised the bill’s budget cuts, which he said were needed to curb Washington’s “runaway spending”.

Despite his praise of the deal, it drew opposition from 71 hardline Republicans. That would normally be enough to block partisan legislation, but 165 Democrats backed the measure and pushed it through.

US

Virginia Giuffre, who accused Prince Andrew of sexual assault, has died, her family says

Published

1 day ago

April 26, 2025

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Virginia Giuffre, who accused Prince Andrew of sexual assault, has died, her family says

Virginia Giuffre, who accused Prince Andrew of sexual assault, has died aged 41.

In a statement to Sky’s US partner network NBC News on Friday, her family said she took her own life in the Perth suburb of Neergabby, Australia, where she had been living for several years.

“It is with utterly broken hearts that we announce that Virginia passed away last night at her farm in Western Australia,” her family said.

“She lost her life to suicide, after being a lifelong victim of sexual abuse and sex trafficking.

“Virginia was a fierce warrior in the fight against sexual abuse and sex trafficking. She was the light that lifted so many survivors.

“In the end, the toll of abuse is so heavy that it became unbearable for Virginia to handle its weight.”

Police said emergency services received reports of an unresponsive woman at a property in Neergabby on Friday night.

“Police and St John Western Australia attended and provided emergency first aid. Sadly, the 41-year-old woman was declared deceased at the scene,” a police spokeswoman said.

“The death is being investigated by Major Crime detectives; early indication is the death is not suspicious.”

Sexual assault claims

Ms Giuffre sued the Duke of York for sexual abuse in August 2021, saying Andrew had sex with her when she was 17 and had been trafficked by his friend, the billionaire paedophile Jeffrey Epstein.

The duke has repeatedly denied the claims, and he has not been charged with any criminal offences.

In March 2022, it was announced Ms Giuffre and Andrew had reached an out-of-court settlement – believed to include a “substantial donation to Ms Giuffre’s charity in support of victims’ rights”.

She stuck by her version of events until the end

Of the many dozens of victims of Jeffrey Epstein, it was Virginia Giuffre who became the most high-profile.

She was among the loudest and most compelling voices, urging criminal charges to be brought against Epstein, waving her right to anonymity in 2015.

She told how he and Ghislaine Maxwell groomed her and “passed around like a platter of fruit” to be used by rich and powerful men.

But her name and face became known around the world after she accused Prince Andrew of sexually abusing her when she was 17 years old.

The picture of her together with the prince and Maxwell at the top of a staircase, his hand around her waist, is the defining image of the whole scandal.

Prince Andrew said he had no memory of the occasion. But Giuffre stuck by her version of events until the end.

‘An incredible champion’

Sigrid McCawley, Ms Giuffre’s attorney, said in a statement that she “was much more than a client to me; she was a dear friend and an incredible champion for other victims”.

“Her courage pushed me to fight harder, and her strength was awe-inspiring,” she said. “The world has lost an amazing human being today.”

“Rest in peace, my sweet angel,” she added.

Dini von Mueffling, Ms Giuffre’s representative, also said that “Virginia was one of the most extraordinary human beings I have ever had the honour to know”.

“Deeply loving, wise, and funny, she was a beacon to other survivors and victims,” she added. “She adored her children and many animals.

“She was always more concerned with me than with herself. I will miss her beyond words.

“It was the privilege of a lifetime to represent her.”

Ms Giuffre said at the end of March she had four days to live after a car accident, posting on social media that “I’ve gone into kidney renal failure”. She was discharged from hospital eight days later.

Raised mainly in Florida, she said she was abused by a family friend early in life, which led to her living on the streets at times as a teenager.

She said that in 2000, she met Ghislaine Maxwell, a British socialite who was convicted in 2021 on federal sex trafficking and conspiracy charges and was sentenced to 20 years in prison.

Ms Giuffre said Maxwell then introduced her to Epstein and hired her as his masseuse, and said she was sex trafficked and sexually abused by him and associates around the world.

‘A survivor’

After meeting her husband in 2002, while taking massage training in Thailand at what she said was Epstein’s behest, she moved to Australia and had a family.

She founded the sex trafficking victims’ advocacy charity SOAR in 2015, and is quoted on its website as saying: “I do this for victims everywhere.

“I am no longer the young and vulnerable girl who could be bullied. I am now a survivor, and nobody can ever take that away from me.”

:: Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.

US

Trump met with Zelenskyy ahead of Pope’s funeral

Published

1 day ago

April 26, 2025

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Trump met with Zelenskyy ahead of Pope's funeral

Donald Trump has met Volodymyr Zelenskyy ahead of the Pope’s funeral, Vatican sources have told Sky News.

The US and Ukrainian presidents had a “very productive discussion”, according to a White House Official, and have also agreed to hold further talks after the service.

They are among world leaders, including Sir Keir Starmer and Emmanuel Macron, who are attending the funeral of Pope Francis.

Follow live updates: Zelenskyy among world leaders joining thousands of mourners

There was applause from some of those gathered in St Peter’s Square when the Ukrainian leader walked out.

The former British ambassador to Russia Sir Tony Brenton said the event presents diplomatic opportunities, including the “biggest possible meeting” between Mr Trump and Mr Zelenskyy.

He told Sky News it could mark “an important step” in starting the peace process between Russia and Ukraine, and is their first face-to-face meeting after a very public row between the presidents at the White House in February.

The bilateral meeting comes after Mr Trump’s peace negotiator Steve Witkoff held talks with Vladimir Putin at the Kremlin.

They discussed “the possibility of resuming direct negotiations between Russia and Ukraine”, Kremlin aide Yuri Ushakov said.

Russia and Ukraine have not held direct talks since the early weeks of the war, which began in February 2022.

Mr Trump has claimed a deal to end the war is “very close” and has urged Mr Zelenskyy to “get it done” in a post on his Truth Social platform.

He has previously warned both sides his administration would walk away from its efforts to achieve a peace if the two sides do not agree a deal soon.

Meanwhile, the Polish Armed Forces said a Russian military helicopter violated its airspace over the Baltic Sea on Friday evening, in a post on X.

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US

Donald Trump says Russia and Ukraine are ‘very close to a deal’ – and says ‘two sides should now meet’

Published

2 days ago

April 25, 2025

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Donald Trump says Russia and Ukraine are 'very close to a deal' - and says 'two sides should now meet'

Donald Trump has said Russia and Ukraine are “very close to a deal” with “most of the major points agreed” – as he called for the two sides to meet.

Shortly after arriving in Rome for Pope Francis’s funeral, the US president said high-level officials should now meet to “finish [the deal] off”.

“A good day in talks and meetings with Russia and Ukraine,” Mr Trump wrote on his Truth Social platform.

“They are very close to a deal, and the two sides should now meet, at very high levels, to ‘finish it off’.

“Most of the major points are agreed to. Stop the bloodshed, NOW. We will be wherever is necessary to help facilitate the END to this cruel and senseless war!”

Throughout the week, the US president has criticised both Ukraine and Russia for failing to agree to a peace deal.

On Wednesday, he accused Mr Zelenskyy of harming talks on Truth Social, saying “the man with ‘no cards to play’ should now, finally, GET IT DONE”.

A day later, after nine people were killed in Kyiv after a Russian missile and drone strike, Mr Trump said: “Vladimir, STOP! 5000 soldiers a week are dying. Let’s get the Peace Deal DONE!”

The president and other officials have also threatened to withdraw from negotiations if no progress is made toward a deal.

It comes after Mr Trump’s envoy Steve Witkoff met Vladimir Putin in Moscow to discuss a US-brokered peace plan for Ukraine.

The talks allowed Russia and the United States to “further bring their positions closer together” on “a number of international issues”, a Kremlin aide said.

Speaking earlier on the flight to Italy, Mr Trump said he hadn’t been fully briefed on Mr Witkoff and Mr Putin’s meeting – but added it was a “pretty good meeting”.

Russia and Ukraine have not held direct talks since the early weeks of the war, which began in February 2022.

Ukraine has repeatedly said it would not accept a deal conceding land or handing over sovereignty to Russia.

However, Mr Trump said in an interview with TIME magazine that “Crimea will stay with Russia,” describing the region as a place where Moscow has “had their submarines” and “the people speak largely Russian”.

“Zelenskyy understands that, and everybody understands that it’s been with them for a long time,” he added. “It’s been with them long before Trump came along.”

When asked on Friday about Mr Trump’s comments, Mr Zelenskyy did not want to comment but repeated that recognising occupied Ukrainian territory as Russian is a red line.