THE deal between US President Joe Biden and the House Republicans over a budget cut affecting the poorest in the country passed its first hurdle with a bipartisan agreement in the House of Representatives on Wednesday.

The deal to raise the US government borrowing limit and prevent a default on the country’s debt repayments now makes its way to the Senate for approval before next week’s June 6 deadline. 

The debt ceiling currently stands at $31.4 trillion (£25tr).

The agreement increases defence spending by $886 billion (£707.29bn), a rise of 3 per cent on this year, while non-defence spending flatlines over the next year with only a 1 per cent rise in 2025.

Estimates from the White House show that overall government spending would be reduced by at least $1tr (£798.30bn. 

A similar bipartisan effort from Democrats and Republicans will be needed in the Senate to overcome objections to the package.

The agreement does nothing to tackle the Donald Trump-era tax breaks for the super-rich that Mr Biden said he wanted.

But the package changes some policies, including imposing new work requirements for older US citizens receiving food aid and giving the green light to an Appalachian natural gas line that many Democrats said they opposed.