President Joe Biden celebrated a “crisis averted” in his first Oval Office address, announcing the signing of legislation that lifts the nation’s debt ceiling just two days before the Treasury Department warned of an impending cash shortage.

Biden expressed gratitude to congressional leaders for their partnership in resolving the standoff from Republican demands to cut spending before raising the borrowing limit. The president also highlighted his efforts to prevent deeper cuts and roll back his agenda while drawing contrasts with the opposing party, particularly raising taxes on the wealthy.

The bill, passed by the House and the Senate, suspends the debt limit until 2025 and includes budget targets for the next two years to ensure fiscal stability. He acknowledged the achievements of his first term, emphasising support for high-tech manufacturing, infrastructure investments, and financial incentives for combating climate change.

The 99-page bill includes several provisions and policy changes. It restricts spending for the next two years, imposes new work requirements for older Americans receiving food aid, and greenlights an Appalachian natural gas pipeline opposed by many Democrats. Environmental rules were modified to streamline approvals for infrastructure and energy projects, addressing the concerns of moderates in Congress.

The legislation bolsters funds for defence and veterans while reducing new funding for the Internal Revenue Service (IRS). However, the IRS will continue to enforce tax laws for high-income earners and corporations. The bill rejects Biden’s proposal to roll back Trump-era tax breaks on corporations and the wealthy to cover the nation’s deficits.

In addition, the agreement imposes an automatic overall 1% cut to spending programs if Congress fails to approve its annual spending bills by the end of the fiscal year in September. This measure is designed to encourage bipartisan consensus and responsible budgeting.

Biden commended House Speaker Kevin McCarthy and all congressional leaders for their responsible and swift action, putting the country’s good ahead of politics. The president’s remarks marked his most detailed comments on the compromise, as he previously allowed space for negotiations and the legislative process.

By signing the debt ceiling bill, Biden ensured the government could borrow to pay the debts already incurred, averting an economically disastrous default. This action provides stability and allows the country to move forward with its financial obligations.