(CNN) The House will vote on a bill to authorize new sanctions against North Korea, House Majority Leader Kevin McCarthy announced Thursday.

The chamber will take up the bill next week from House Foreign Affairs Chairman Ed Royce that targets North Korea's shipping and financial sectors with sanctions and attempts to crack down on the use of slave labor to fund Pyongyang.

The bill also calls for the Trump administration to determine within 90 days whether North Korea should be re-designated as a state sponsor of terrorism, something a White House official said Wednesday the Trump administration is now considering.

The planned vote comes amid escalating tensions between North Korea and the US. As Pyongyang has escalated its rhetoric and hinted at a another nuclear test, Trump administration officials have warned the President is willing to take military action to stop the North from obtaining a long-range missile that could strike US soil.

Trump told Reuters on Thursday that he would prefer a diplomatic solution to the issue but warned of possible military action that could spark a massive conflict.

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