The catastrophic default in the United States has been averted. The White House and House Republicans in the U.S. Congress have reached a significant agreement that would allow the government to increase the national debt, which has already exceeded an astronomical sum of $31.4 trillion.

It is reported that the House of Representatives will vote on the bill on Wednesday, May 31. The initiative must then be approved by the Senate of Congress before it can be signed by President Biden.

Joe Biden announced the preliminary budget agreement on his Twitter account. The American leader described the agreement as an important step. He emphasized that the agreement is "good news for the American people because it prevents what could have been a catastrophic default and an economic downturn, depleting retirement accounts, and costing millions of jobs."

In January, the United States surpassed the legally established debt ceiling of $31.4 trillion. Following this, the U.S. Treasury had to take extraordinary measures to continue its financial operations.