US House passes debt-limit bill

1 August 2011 Last updated at 19:53 ET

John Boehner (centre) said the debt plan could “help get the American people back to work”

The US House of Representatives has passed by 269 votes to 161 a last-ditch deal to avoid a federal debt default.

There were cheers as Congresswoman Gabrielle Giffords made her first appearance on Capitol Hill since she was shot in Tucson in January.

The legislation must now be passed by the US Congress’s upper chamber, the Senate, and approved by President Barack Obama to become law.

The bill would raise the debt ceiling by $2.4tn (£1.5tn) – from $14.3tn.

It would also make budget savings of $2.3tn over 10 years.

After months of bitterly partisan deadlock, the House’s Republican and Democratic leaders swung behind the bill, ratifying a deal sealed on Sunday night with a phone call from House Speaker John Boehner to President Obama.

Ms Giffords – who has undergone a number of operations since she was shot in the head seven months ago – caught lawmakers by surprise when she appeared for the vote.

She voted in favour of raising the debt ceiling.

Ms Giffords hugged House Democratic leader Nancy Pelosi, who said she was the “personification of courage”.

Senate Democratic Leader Harry Reid said the Senate would vote on the deal at 12:00 local time (16:00 GMT) on Tuesday. The measure needs 60 votes to pass the 100-seat body.

A deadline expires on Tuesday on the federal government’s ability to borrow money to pay its bills.

The package allows the federal government enough funds to keep running past the 2012 presidential election.

Though the bill is expected to pass the Democratic-controlled Senate, some Democrats have rallied against the deal, saying they strongly oppose the prospect of cut to social programmes, benefits and healthcare for the elderly or lower-paid.

Shortly before voting began, House Democratic Leader Nancy Pelosi said she would back the bill, after earlier saying she was undecided.

Mr Boehner told a news conference before the vote: “The legislation will solve this debt crisis and help get the American people back to work.”

The proposed deal calls for:

• A debt ceiling increase of up to $2.4tn – enough to last past the 2012 presidential election
• Government spending cuts of $900bn, split between defence and non-defence spending
• Bipartisan congressional “super-committee” to recommend $1.5tn of further spending cuts, spread out over 10 years, reporting by November
• Cuts to key spending areas, including defence, to be enacted automatically if the committee fails to reach a deal
• Committee findings would also be put to a vote in Congress

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