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The U.S. House of Representatives overwhelmingly approved an agreement to postpone the debt limit, reducing the risk of default, Reuters reported.

The bill must also be passed by the Senate and then signed by President Joe Biden.

The House of Representatives approved the bill, which is the result of weeks of negotiations between Biden and House Speaker Kevin McCarthy, by 314 votes to 117.

The bill provides for curbs on some spending, which does not include defense spending, and postponing payment of the debt for two years. The federal deficit will be reduced by about $1.5 trillion over the next decade, according to the Congressional Budget Office.

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"This agreement is good news for the American people and the American economy," Biden said after the vote. "I urge the Senate to pass it as soon as possible so that I can sign it into law," he said.