Obama Signs Debt Limit Bill into Law
- Posted on August 2, 2011 at 4:42pm by
Tiffany Gabbay
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WASHINGTON (The Blaze/AP) — The Senate emphatically passed emergency legislation Tuesday to avoid a first-ever government default, rushing the legislation to President Barack Obama for his signature just hours before the deadline. The vote was 74-26.
Obama signed the bill little more than an hour later.
Tuesday’s vote capped an extraordinarily difficult Washington battle pitting tea party Republican forces in the House against Obama and Democrats controlling the Senate. The resulting compromise paired an essential increase in the government’s borrowing cap with promises of more than $2 trillion of budget cuts over the next decade.
“It’s an important first step to ensuring that as a nation we live within our means,” Obama said after the vote. “This is, however, just the first step. This compromise requires that both parties work together on a larger plan to cut the deficit.”
Much of the measure, which the House passed Monday night, was negotiated on terms set by House Speaker John Boehner, including a demand that any increase in the nation’s borrowing cap be matched by spending cuts. But the legislation also meets demands made by Obama, including debt-limit increases large enough to keep the government funded into 2013 and curbs on growth of the Pentagon budget.
“We’ve had to settle for less than we wanted, but what we’ve achieved is in no way insignificant,” said Senate GOP leader Mitch McConnell of Kentucky. “But I think it was the view of those in my party that we‘d try to get as much spending cuts as we could from a government we didn’t control. And that‘s what we’ve done with this bipartisan agreement.”
Many supporters of the legislation lamented what they saw as flaws and the intense partisanship from which it was forged. In the end, it was a lowest-common-denominators approach that puts off tough decisions on tax increases and cuts to entitlement programs like Medicare.
“What troubles me about it is that the bipartisan compromise also represents a kind of bipartisan agreement by each party to yield to the other party’s most politically and ideologically sensitive priority,” said Joseph Lieberman, I-Conn. “In the case of Democrats, it’s to protect entitlement spending. … In the case of Republicans, it’s to not raise taxes.”
The measure would provide an immediate $400 billion increase in the $14.3 trillion U.S. borrowing cap, with $500 billion more assured this fall. That $900 billion would be matched by cuts to agency budgets over the next 10 years.
The Senate vote was never in doubt after Majority Leader Harry Reid, D-Nev., and McConnell signed on. But like Monday’s House vote, defections came from liberal Democrats unhappy that Obama gave too much ground in the talks, as well as from conservative Republicans who said the measure would barely dent deficits that require the government to borrow more than 40 cents of every dollar it spends.
“This is a time for us to make tough choices as compared to kick the can down the road one more time,” said freshman GOP Sen. Jerry Moran of Kansas.
The measure sets up a fall drama that promises to again test the ability of Obama and Republicans to work cooperatively. It establishes a special bipartisan committee to draft legislation to find up to $1.5 trillion more in deficit cuts for a vote later this year. They’re likely to come from such programs as federal retirement benefits, farm subsidies, Medicare and Medicaid. The savings would be matched by a further increase in the borrowing cap.
There’s no guarantee the committee, to be evenly split between the warring parties, will agree on such legislation. But there are powerful incentives to do so because more budget gridlock would trigger a crippling round of automatic cuts across much of the budget, including Pentagon coffers.
And questions linger about the effect the grueling political free-for-all will have on the U.S. credit rating.
Treasury Secretary Timothy Geithner told ABC News that he didn’t know whether the debt-limit fight would cause America’s AAA credit rating to be downgraded. “It’s not my judgment to make,” he said. Geithner also said he fears world confidence in the United States was damaged by “this spectacle.”
Enactment of the measure provides welcome closure for Obama, who has seen his poll numbers sag during the debt-limit battle.
GOP presidential candidates such as Mitt Romney and Michele Bachmann issued statements opposing the legislation.
“As with any compromise, the outcome is far from satisfying,” Obama conceded in a video his re-election campaign sent to millions of Democrats.
In a tweet, the president was more positive: “The debt agreement makes a significant down payment to reduce the deficit – finding savings in both defense and domestic spending.”
Watch the President deliver his remarks after the debt deal passed Congress:
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Comments (78)
Abila
Posted on August 2, 2011 at 5:52pmWell, the dung mound on the white house lawn has turned into a volcano-I hope it doesn’t cause an earth quake. This WASN’T HISTORY-but one big nail in the US economy-the banana republicians and commie liberals DON’T care. So, no matter who u vote for u get an idiot-this IS a slick type of tyranny. Also, the dems want mandated obamacare and the repub’s passed the internet snope bill which was a mandated-thankful for petitions and the US supreme court we can still stop these fools!
Report Post »snidley-whiplash
Posted on August 2, 2011 at 6:00pmWhere is the news about ridding ourselves of bonner and the damn RINOS.
Report Post »Just sick, sick of reading this trash. This time they didn’t even use the vaseline.
OOOOOOUCH
2 late for 2012 prepare for the worst.
MidWestMom
Posted on August 2, 2011 at 6:06pmWe’re so totally screwed….
Report Post »SavingtheRepublic.com
Posted on August 2, 2011 at 6:14pm^____^____^
Mountain of debt cannot be fixed with little drop in the water, ram through bills like this that NO ONE reads. Worst part no one really has an idea of what all this debt looks like until now! Check this out!! http://usdebt.kleptocracy.us/
There is noway we are coming out of this unscathed. US is definitely on its way to a banana republic and I am learning that this Super Congress is not restricted to handling just the debt. They will be able to “rule” on anything and there is noway for them to be stopped, not by the Speaker preventing votes to the floor or filibuster in the Senate. Those things do not apply to this new congress being created! We are royally screwed! http://SavingtheRepublic.com
Report Post »hi
Posted on August 2, 2011 at 6:36pmAbila
Report Post »I agree. It is so maddening.
Doc_Slammin
Posted on August 2, 2011 at 6:44pmThe debt crisis is over! Hooray!
http://theindependentrant.com/2011/08/02/the-debt-crisis-is-over
Report Post »tower7femacamp
Posted on August 2, 2011 at 8:22pmthat always was the End Game
Report Post »g1911
Posted on August 2, 2011 at 5:52pmI have come to the conclusion after my 67 years on this planet that the United States of America Federal Government is the enemy of a free people.
Report Post »Taxes (your money spent on programs that you don’t believe in)
Regulations (have put more businesses out of business than anything else)
Class war fare (I don’t have to explain, just listen to them talk)
Elitism (the belief that government or control should be in the hands of a small group of privileged, wealthy, or intelligent people)
As you can tell I‘m pretty much feed up with our country’s state of affairs and a lot of the people that call themselves Americans, this country was founded on hard work and the freedom to make what you could of yourself. Not what you could steal from your neighbor (pay my health care, etc.) or get from the government (subsidies, contracts, pay my mortgage, etc.)
I think we as Americans need to step back and take a long look at where we came from and where we are going.
My grandchildren are not going to have the life choices we have enjoyed.
LadyIzShy
Posted on August 2, 2011 at 5:46pmof coarse he hurried to sign it he is leaving town for his birthday fund raising event. personally I dont know who can afford to give him money, I cant not that I would but come on I cant even afford to go out to dinner or order pizza most weeks..
hows that hope and change working for all of you that voted for him?
Report Post »walkwithme1966
Posted on August 3, 2011 at 2:34amHe was probably in a hurry to have a cigarette!! http://wp.me/pYLB7-1ia
Report Post »dizzyinthedark
Posted on August 2, 2011 at 5:32pm…….kneeling at toilet bowl, hands holding head……Pardon me while I regurgitate this bit o AWFUL NEWS!
Report Post »Newton27
Posted on August 2, 2011 at 5:31pmOK, now that we have this whole debt ceiling thing taken care of government needs to get down to the business of creating jobs cuz, you know, that’s what a socialist empire does.
Report Post »MODEL82A1
Posted on August 2, 2011 at 5:27pmWhat about all your angry bluster? Many of you DEMANDED this bill not become law. What’cha gonna do about it?
Report Post »hi
Posted on August 2, 2011 at 6:47pmWe are going to pray for our nation then pray there are enough people who love freedom to vote the ccommies out in 2012. God’s Will be done. Amen!
Report Post »solaveritas
Posted on August 2, 2011 at 5:26pmLets count our blessings.
AT LEAST WE DIDN’T HAVE TO LISTEN TO ANTHONY WEINER THROUGH THIS WHOLE THING!!
Report Post »Kiti45
Posted on August 2, 2011 at 5:25pmLet the spending begin….God help us.
All I can say is do want you can to prepare prepare prepare…
Report Post »Just South Of Heaven
Posted on August 2, 2011 at 5:24pmAt 1:22 into Obama’s sermon, err, i mean speech, is he really back on taxing the rich! I’m starting to really believe he wishes to destroy America to rebuild it as he sees it!
An odd/funny side note, has anyone else noticed that Obama whistles when pronouncing many words? Once you notice it, you hear each and every whistle and it becomes annoying. Much like Obama himself.
Report Post »heavyduty
Posted on August 2, 2011 at 5:21pmIf anyone thinks that the 12 member committee will ever be able to agree or pass anything is plumb nuts. They can’t expect anyone to accept this, and we have been sold out again. We need more Tea Party members in congress. The only good part about any of this is that the Democrats are the ones that created the Tea Party.
Report Post »Exrepublisheep
Posted on August 2, 2011 at 5:50pmI believed in the tea party. Sometimes I still do. But not the Koch brothers part. That part stinks.
Report Post »fdonnino
Posted on August 2, 2011 at 5:19pmDow down huge today. How’s it working for you so far?
Report Post »TAKE_NO_PRISONERS
Posted on August 2, 2011 at 5:18pm“As with any compromise, the outcome is far from satisfying,” Obama conceded
Hey Barry Jr. suck it up ,bend over a take it like you give it.
Report Post »lonewolf57
Posted on August 2, 2011 at 5:17pm“Finding savings in defense….”
I’m sure our treasured Military,and the American people in general will appreciate being left wide open to defeat by the Worlds tyrants,Mr.President.
Report Post »What a historic but sad day for the USA.
lonewolf57
Posted on August 2, 2011 at 5:07pmMy Representative,Tea Party freshman Congressman Justin Amash was the ONLY Michigan Republican to vote against this bill.
Report Post »And unlike the many others,he can walk away with his integrity and honor INTACT.
crolic9
Posted on August 2, 2011 at 5:18pmWho ever voted for this bill should go. No matter how many calls, e-mails, twitters etc. it made no difference. they have sold out the Americans……THANK YOU VERY MUCH>>>AND FOR WHAT???????????
Report Post »Midnight Rider
Posted on August 2, 2011 at 5:22pmI sent a letter to mine. dishonorable Dave Camp. Justin is a true Representative.
Report Post »vinnymac46
Posted on August 2, 2011 at 5:04pmIts always amazing to hear Oblama speak as if he just got elected yesterday and had nothing to do with the mess the country is in. Of course when he says Americans he means the ones who voted for him and his radical left buddies.
Report Post »Exrepublisheep
Posted on August 2, 2011 at 5:12pmAre you allowed to post here without saying commie?
Report Post »stinkybisquit
Posted on August 2, 2011 at 5:24pmYes you can, Ex, but it helps to relief some of the frustration. Try Marxist, too.
Report Post »OneofMany
Posted on August 2, 2011 at 5:03pmWithout the Balanced Budget Amendment this whole thing was a big charade… The citizens of the U.S.A. got ripped off again by the Federal Reserve to the tune of 2.x trillion dollars.
Without a conservative revolution, this country is doomed.
Report Post »miles from nowhere
Posted on August 2, 2011 at 5:00pmObama just called Soros telling him we just screwed America, now do not forget to slip that extra billion in my private bank account over seas.
Report Post »turkey13
Posted on August 2, 2011 at 5:23pmObama is in cohoots with Glen Beck! Two years ago Beck told folks to buy gold when it was around $800.00 an ounce – today it closed at $1657.00. George Sorass and China have been the biggist buyers. I bought silver a year and half ago at $15.00 to $18.00 an ounce – today it closed at $41.60 an ounce. Man the rich just got richer – go tax them. Opps, forgot George Soreass deals only in off shore banks.
Report Post »Exrepublisheep
Posted on August 2, 2011 at 5:00pm*sigh*
Report Post »virgie morgan
Posted on August 2, 2011 at 4:59pmWe’re all socialists now!! And we are all doomed. But that’s what happens when you put a communist in the WH
Report Post »NuffSaid
Posted on August 2, 2011 at 4:55pmSo now Barrack, “KMART” Obama has raised the limit on the credit card. You think he cares what the “cuts” in spending are? The republican are so weak and stupid that there won’t be any cuts. The republican member of the senate and congress will be home with the stock managers, figuring out hos to make money when the interest rates go up.
Report Post »SPOT_OF_TEA
Posted on August 2, 2011 at 4:55pmFor a while now i‘ve been saying nothing is real and on Rush’s show today he used those same words then continued with a long momologue explaining why….Rush 24/7 subscribers who didnt get a chance to hear it today should have a listen….it was during the 3rd hour of the show.
Report Post »endgamer
Posted on August 2, 2011 at 4:55pmConfidence? Who gives a damn about what the world thinks of us? Have we ever cared? Spectacle?
Report Post »The media made it a spectacle and it was an important one. We need to get our finances in order..Period. I cannot believe the spin. Well, form this administration I believe the spin. Nothing but BS.
NuffSaid
Posted on August 2, 2011 at 4:53pmHe wins again and the Repubs claim victory. You ass8e just gave the biggest bozo in American history a nice birthday president.
With an adversary like the Republican party, guilt ridden, closet racist, greedy, spineless robbers, Obama will march us into socialism and the republicans will vacuum the red carpet following the ceremony.
I can see John Boehner there now, tear in his eye,holding a broom.
Report Post »OneofMany
Posted on August 2, 2011 at 5:04pm@nuffsaid, couldn’t agree more.
Report Post »JazzGuy
Posted on August 2, 2011 at 5:18pm@NUFFSAID… I hate what you wrote, and despise that I have to agree with you. God Help us all……
Report Post »Gonzo
Posted on August 2, 2011 at 4:46pmHooray! 7 billion more in debt in the next 10 years…hooray!
Report Post »Gonzo
Posted on August 2, 2011 at 4:49pm7 TRILLION not billion…Hooray! USA, USA,USA!
Report Post »stinkybisquit
Posted on August 2, 2011 at 4:45pmSigned in private. Autopen?
Report Post »Anonymous T. Irrelevant
Posted on August 2, 2011 at 4:55pmWhat? No carrying the gavel? No grand march? Cuts in the next 10 years? Doesn’t feel like a win.
Report Post »I feels like we won the game, but lost a lot of players due to injury and the championship is next week.