But the challenge is not over. The bill still needs to pass the House and Senate before it can be sent to Biden’s desk to be signed into law.

Mr Biden and Mr McCarthy formally agreed to the deal after closed-door meetings last week.

Mr McCarthy has said he will give House members 72 hours to read the bill before holding a vote, and that passage through the House and Senate could take several days.

The Treasury Department has warned that the US government may not be able to pay its bills after June 5, four days later than Treasury Secretary Janet Yellen had previously predicted.

Can the US government raise the debt ceiling itself?

If things get worse, the House could use a rarely used emergency measure: It could put a vote on raising the debt ceiling without a budget provision. House Democrats have backed the idea, but it would be unlikely to succeed unless some Republicans are convinced.

In theory, Mr. Biden could also try to invoke the 14th Amendment to the US Constitution, which states that “the validity of the public debt of the United States… shall not be questioned,” to raise the debt ceiling himself. However, this could face opposition from the high courts.

The US House of Representatives will vote first

The House of Representatives, controlled by Republicans by a narrow 222-213 majority, is expected to vote first. They need at least 218 votes for the bill to pass, which is theoretically possible if all Republicans are present and vote. Debate and a vote in the House could take a day or two.

The Senate will vote later.

If passed by the House, the bill would move to the Senate, where Democrats hold a 51-49 majority.

The bill would need the support of at least nine Republicans to pass. The bills all require 60 Senate members to support them. Senate consideration and voting could take nearly a week.

Senate Democratic leader Chuck Schumer has sole discretion over when legislation will be brought up for a vote. But senators can slow the process down by insisting on procedural maneuvers, including 30 hours of debate on whether to begin debate and another 30 hours of debate on the bill.

Once approved by the House and Senate, the deal will head to the White House for Mr Biden to sign into law.

Quoc Thien (according to Reuters)