Biden claims that the debt ceiling compromise avoided an “economic collapse.”

In his first Oval Office address to the country, the president of the United States stated that increasing the US borrowing ceiling prevented “economic collapse.”

On Saturday, the legislation passed Congress with overwhelming bipartisan support, and he promised to sign it into law.

The president of the Democratic Party gave his Republican counterparts some rare, heartfelt compliments, claiming that they “operated in good faith.”

It would have been “catastrophic” if the US had missed the deadline and defaulted on its $31.4 trillion (£25 trillion) debt, he warned.

The Oval Office addresses the country only during significant crises like war or calamities.

According to the White House, Mr. Biden’s decision to speak there highlighted the seriousness of the situation if the debt ceiling hadn’t been lifted at the last minute.

Weeks of negotiations between the White House and Republicans resulted in uncertainty as to whether the package would be completed before the US government ran out of money on June 5.

The bill easily passed the House of Representatives on Wednesday and was approved by the Senate on Thursday night with a vote of 63-36.

Mitch McConnell, the leader of the Republican Senate, and Kevin McCarthy, the speaker of the House, received admiration from the president.

According to Mr. Biden, who is up for reelection in 2024, “They acted properly and put the well-being of the nation ahead of politics.”

The agreement increases labour requirements for food and healthcare aid, among other conditions, suspends the debt ceiling until January 1, 2025, and freezes non-defence spending.

Additionally, full funding would be increased for the medical care provided to military personnel, as requested by President Biden.

According to the nonpartisan Congressional Budget Office, the law will save $1.5 trillion over the course of ten years.

Despite being generally bipartisan, several Republicans felt that the compromise did not go far enough in terms of cutbacks, while some Democrats felt that it went too far.