The United States has moved closer to enacting a deal that allows the country to borrow additional funds, just days before it faces the risk of defaulting on its debt.

The proposed measure easily cleared the House of Representatives with a vote of 314-117, despite some members defecting from both sides of the aisle.

The Senate is currently convening for a vote, which is crucial for the bill to proceed to President Joe Biden for signing into law.

The government is projected to reach its borrowing limit on June 5th, leaving little room for error as lawmakers rush to prevent a default on the nation's $31.4 trillion (£25 trillion) debt, which serves as the foundation of the global financial system.

A default would have severe implications, preventing the government from borrowing further funds or fulfilling all its financial obligations. This scenario would also have far-reaching consequences for the global economy, impacting prices and mortgage rates in other countries.

On Wednesday evening, 165 Democrats joined 149 Republicans in approving the 99-page bill to raise the debt ceiling, allowing it to pass the House by the required simple majority.

With Republicans in control of the lower chamber of Congress and Democrats holding sway in the upper chamber and White House, a deal had proven elusive for weeks until Mr Biden and House Speaker Kevin McCarthy inked a bipartisan compromise over the weekend.

In a statement, Mr Biden thanked the speaker, saying he had negotiated in good faith.

"Neither side got everything it wanted," said the president. "That's the responsibility of governing."