The US House of Representatives has voted to agree a deal reached by President Joe Biden and Speaker Kevin McCarthy to raise the amount America can borrow. Failure would have meant the country would have defaulted on debt payment obligations for the first time in its history. 

Republicans and Democrats passed a compromise deal to raise the debt ceiling on the condition that the government cuts federal spending.

However, the Fiscal Responsibility Act still has to pass through the Senate to become law. It will be rushed through the Senate before Monday June 5, the date when Treasury Secretary Janet Yellen has warned the US risks default, which could trigger a global economic downturn.

US lawmakers have argued for weeks over whether to raise or suspend the so-called “debt ceiling”, which determines how much money the US government can borrow.

What has gone wrong and what is included in the debt ceiling deal?