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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.”

House Speaker Kevin McCarthy and President Joe Biden have reportedly reached a "tentative deal" on raising the US debt ceiling
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The deal comes after an agreement was reached between Republican Mr McCarthy and Democrat president, Joe Biden

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.

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US debt ceiling: What is it and how devastating would a default be?

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.

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US Justice Department releases Ghislaine Maxwell interview transcript

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US Justice Department releases Ghislaine Maxwell interview transcript

The US Justice Department has released a transcript of an interview with Ghislaine Maxwell – the jailed ex-girlfriend of paedophile financier Jeffrey Epstein.

Maxwell said in the interview with Deputy Attorney General Todd Blanche last month that she never saw US President Donald Trump in an “inappropriate setting”.

According to the transcript, Maxwell said: “I never witnessed the president in any inappropriate setting in any way. The president was never inappropriate with anybody.”

Trump and Epstein at a party together in 1992. Pic: NBC News
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Trump and Epstein at a party together in 1992. Pic: NBC News

Maxwell also recalled knowing about Mr Trump and possibly meeting him for the first time in 1990, when her newspaper magnate father, Robert Maxwell, was the owner of the New York Daily News.

“I may have met Donald Trump at that time, because my father was friendly with him and liked him very much,” Maxwell said, according to the transcript.

Maxwell said her father was fond of Mr Trump’s then-wife, Ivana, “because she was also from Czechoslovakia, where my dad was from.”

She was sentenced in the US in June 2022 to 20 years in prison following her conviction on five counts of sex trafficking for luring young girls to massage rooms for Epstein to abuse. She has asked the US Supreme Court to overturn her conviction.

Epstein, 66, was found dead in his cell at a Manhattan federal jail in August 2019 as he awaited trial on sex trafficking charges. His death was ruled a suicide.

Jeffrey Epstein. File pic: New York State Sex Offender Registry via AP
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Jeffrey Epstein. File pic: New York State Sex Offender Registry via AP

His case has generated endless attention and conspiracy theories due to his and Maxwell’s links to famous people like royals, presidents and billionaires, including Mr Trump. No one other than Epstein and Maxwell has been charged with crimes.

Mr Trump knew Epstein socially in the 1990s and early 2000s. During Maxwell’s trial in 2021, Epstein’s longtime pilot, Lawrence Visoski, said Mr Trump flew on Epstein’s private plane several times. Mr Trump has denied flying on the plane.

Maxwell said in her interview with the Justice Department that she never saw Mr Trump receive a massage.

She told Mr Blanche that Mr Trump “was always very cordial and very kind to me”, adding: “And I just want to say that I admire his extraordinary achievement in becoming the president now.”

The release of the transcript comes after Mr Trump has faced criticism from Republican supporters and Democrats over his Justice Department’s decision not to release further details relating to Epstein, after the now US president promised to do so during the election.

Jeffrey Epstein and Ghislaine Maxwell
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Jeffrey Epstein and Ghislaine Maxwell

The Justice Department previously said a review of the Epstein case had found “no incriminating ‘client list'” and “no credible evidence” the jailed financier had blackmailed famous men.

In the transcript of the department’s interview with Maxwell, Epstein’s former girlfriend said that she is not aware of any Epstein ‘client list’.

After her interview in July, Maxwell was moved to a minimum-security prison camp in Bryan, Texas, by the federal Bureau of Prisons (BOP) after she was held at a low-security prison in Tallahassee, Florida, that housed men and women.

Read more from Sky News:
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Trump critic has home raided by the FBI

The Texas camp houses solely female prisoners, the majority of whom are serving time for nonviolent offences and white-collar crimes.

Neither Maxwell’s lawyer nor the BOP gave a reason for the move.

Maxwell’s legal team have maintained that she was wrongly prosecuted and denied a fair trial, and have floated the idea of a pardon from Mr Trump.

Ghislaine Maxwell with Jeffrey Epstein. Pic: US Department of Justice
Image:
Ghislaine Maxwell with Jeffrey Epstein. Pic: US Department of Justice

The president said earlier this month that “nobody” had asked him about pardoning Maxwell, but insisted that he has “the right to do it”.

Mr Trump said: “I’m allowed to do it, but nobody’s asked me to do it. I know nothing about it. I don’t know anything about the case, but I know I have the right to do it. I have the right to give pardons, I’ve given pardons to people before, but nobody’s even asked me to do it.”

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Multiple people killed after tour bus returning to New York City from Niagara Falls crashes

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Multiple people killed after tour bus returning to New York City from Niagara Falls crashes

A tour bus returning to New York City from Niagara Falls has crashed on a major road, killing and injuring multiple people.

The bus, with 52 passengers on board, crashed and rolled on Interstate 90 near Pembroke, about 30 miles (48km) east of Buffalo, in New York State at around 12.30pm (5.30pm UK time).

“At this time we have multiple fatalities, multiple entrapments and multiple injuries,” said Trooper James O’Callaghan, a spokesperson for the New York State Police. He added that authorities believe one child was among those killed.

Several people inside were thrown from the bus as the windows shattered, while some passengers became trapped in the wreckage.

Some passengers remain trapped in the wreckage of the bus. Pic: Buffalo News/AP
Image:
Some passengers remain trapped in the wreckage of the bus. Pic: Buffalo News/AP

Erie County Medical Centre in Buffalo said it had received 24 patients.

At a news conference, Dr Jennifer Pugh, chief of emergency medicine, said two people had been taken to the operating theatre, one of whom had suffered internal injuries.

Dr Jeffrey Brewer, chief of surgery, said he expected that two patients who had suffered the most serious injuries would recover.

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He added that people had been admitted with blunt trauma, head injuries and extremity (arm and leg) fractures.

Mr O’Callahan said most people on the bus were Indian, Chinese, and Filipino, and translators were being brought to the scene. The driver survived and is cooperating with the police.

He added, “It’s a full-size tour bus. Heavy amount of damage. Most people, I’m assuming, on the bus did not have a seat belt on, that is the reason why we have so many ejected people on this bus.”

The Mercy Flight air medical transport service said its three helicopters were transporting people from the crash site to area hospitals.

“It’s a very active scene,” said Mercy Flight president Margaret Ferrentino. “At this time we’re praying for the victims.”

Mr O’Callaghan said the driver, who survived the accident, lost control while the bus was at full speed, causing it to flip when he tried to correct course.

The highway has been closed in both directions, causing massive traffic delays at the onset of one of the last weekends of the summer vacation season.

The falls, which are on the US-Canada border, are a major tourist attraction.

More than nine million visitors explore Niagara Falls State Park annually, according to the official website for the park.

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FBI raids home of Trump’s former national security adviser John Bolton

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FBI raids home of Trump's former national security adviser John Bolton

The FBI has raided the home of John Bolton, the former national security adviser to Donald Trump who has since become a staunch critic of the US president.

The search of Mr Bolton’s house in Bethesda, Maryland on Friday was part of a “national security investigation in search of classified records”, reported NBC News, Sky’s US partner network, citing a source.

Mr Bolton has not been detained or apprehended. He served as President Trump’s top security adviser for 17 months during his first term in office, but was forced out of the role in 2019.

President Trump on Friday told reporters in Washington that he’d had no advance knowledge of the raid, adding: “I’m not a fan of John Bolton.”

The US Justice Department is yet to comment but FBI director Kash Patel posted on X on Friday morning, writing: “NO ONE is above the law… @FBI agents on mission.”

An FBI official said in a statement the agency was “conducting court authorized activity in the area”, indicating grounds had been approved for a search warrant.

Mr Trump’s former adviser is yet to respond to enquires for comment. He was not at his home during the early morning raid, CNN reported. He was seen in his Washington DC office on Friday in talks with FBI officials, according to the Associated Press.

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FBI members carry boxes outside the home of the former White House national security adviser John Bolton.
Pic: Reuters
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FBI members carry boxes outside the home of the former White House national security adviser John Bolton.
Pic: Reuters

US federal authorities are yet to release any detail as to why the search has been conducted and what allegations may be levelled against Mr Bolton.

Unnamed sources told the New York Times that an investigation has been launched into whether Mr Bolton illegally shared or possessed classified information. NBC reported a source saying the probe was looking into potential instances of the documents being leaked to journalists.

During his time as adviser, Mr Bolton had clashed regularly with the president on policy direction over Iran and North Korea. He was viewed as hawkish adviser, and President Trump has previously criticised him as “warmongering”, saying he pushed him to take military action on Iran.

John Bolton listens as President Donald Trump speaks during a cabinet meeting in April 2018. Pic: AP.
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John Bolton listens as President Donald Trump speaks during a cabinet meeting in April 2018. Pic: AP.

Since leaving the post, Mr Bolton has called the Republican president unfit to serve, and most recently criticised Trump’s actions in Ukraine and negotiations with Russian President Vladimir Putin.

In 2020, Mr Bolton also published a memoir of his time in the White House, in which he described multiple instances of what he described as Mr Trump’s misconduct and incompetence in handling foreign policy.

He also alleged that the president often prioritised his own personal interests over national security. Prior to publication, Trump’s government had tried to block the release but failed in its legal bid.

Since his return to office, Trump has on multiple occasions sought to use his presidential powers against perceived political enemies. On his first day back in the White House, Trump revoked the security clearances of more than four dozen intelligence officials, including Mr Bolton.

He also cancelled security detail for Mr Bolton and two other former Trump officials earlier this year. The officials had been receiving the federal protection because of threats to their safety from Iran.

Prior to working in Trump’s first-term team, Bolton had previously served in George W. Bush’s administration as the US ambassador to the United Nations.

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