The US House of Representatives on Friday passed a Republican proposal to raise the debt ceiling in two instalments, a plan that faces stiff resistance in the Democratic-controlled Senate and the White House, DPA reported.
The House voted 218-210 in favour of the bill.
With tension growing over the approaching default deadline of Tuesday, House Speaker John Boehner had to postpone the vote for two days as he pursued support from conservative Republicans, who demanded even more restrictive passages on government spending.
"Support this bill, end this crisis now!" Boehner shouted in his remarks before voting began.
Boehner's proposal has virtually no chance in the Democrat- controlled Senate and the White House has previously said the president would veto it.
In the plan adopted by the House, the debt limit would be raised immediately by 900 billion dollars, with a second debt limit increase of an uspecified amount by January only after Congress passes a constitutional amendment to balance the budget.
The plan also calls for cuts in government spending that are greater than the increase in the debt limit. The US government reached its 14.3-trillion-dollar debt limit in May, but has patched through until the deadline of August 2 with other sources of funds.
US President Barack Obama opposes the two-step plan because it would prolong the uncertainty about the country's finances for another half year and likely wreak havoc not only with the country's credit rating but also with interest rates for consumers and business.
Even if Congress passes a balanced budget amendment to the constitution, it would still require approval by a large majority of the 50 US states.
If no agreement is reached to increase Washington's borrowing limit, the government faces defaulting on its debt, something that has only rarely happened in US history. dpa pr Author: Pat Reber
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