“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
WASHINGTON (AP) — With just hours left before the national debt
bumps against its ceiling, emergency bipartisan legislation to
allow the government to borrow more faces one final test in the
Senate. Expected passage there sends the bill to President Barack
Obama, averting a potentially disastrous, first-ever government
default and making a down payment toward taming out-of-control
budget deficits.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
The legislation, which easily passed the House on Monday, is
virtually assured to clear the Senate shortly after noon Tuesday by
a bipartisan tally. The White House promises Obama will sign the
measure into law.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
The legislation pairs an increase in the government’s borrowing cap
with promises of more than $2 trillion of budget cuts over the
upcoming decade. Its passage caps a long, difficult battle between
tea party-powered House Republicans and Obama – with House Speaker
John Boehner caught in the middle more than once.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
After months of fiercely partisan struggle, the House’s top
Republican and Democratic leaders swung behind the bill, ratifying
a deal sealed Sunday night with a phone call from Boehner to
Obama.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
“I’m not happy with it,” Minority Leader Nancy Pelosi, D-Calif.,
said. “But I’m proud of some of the accomplishments in it. That’s
why I’m voting for it.”
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
Amid the high intrigue of the historic moment, the drama was
heightened even further when Rep. Gabrielle Giffords, the Arizona
congresswoman wounded in a shooting rampage seven months ago, made
a surprise visit to the House floor to cast her vote. Colleagues on
both sides of the aisle rushed to her side to embrace her, and
Pelosi saluted her courage and resiliency.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
Much of the House-passed measure was negotiated on terms set by
Boehner, which included a demand that any increase in the nation’s
borrowing cap be matched by spending cuts at least as large. But it
also meets demands made by Obama, including debt increases large
enough to keep the government funded into 2013 and curbs on growth
of the Pentagon budget.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
Even though Obama strongly supported the measure, half of the
chamber’s Democrats opposed it. Sixty-six conservative Republicans
opposed the measure as well.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
Still, after storming the Capital in January – only to see bill
after bill die in the Democratic Senate – many junior House
lawmakers opted to view the legislation through the prism of
optimism.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
“It’s about time that Congress come together and figure out a way
to live within our means,” said Rep. Sean Duffy, R-Wis. “This bill
is going to start that process, although it doesn’t go far
enough.”
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
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.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
What follows next is more complicated. The measure 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 so-called mandatory programs like
federal retirement benefits, farm subsidies, Medicare and Medicaid.
The savings would be matched by a further increase in the borrowing
cap.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
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.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
And questions linger about the effect the grueling political
free-for-all will have on the U.S. credit rating.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
Treasury Secretary Timothy Geithner told ABC News in an interview
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.”
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
The vote during Monday’s dinner hour in the capital came after
intense efforts at persuasion by the administration.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
The White House dispatched Vice President Joe Biden to the Capitol
to lobby recalcitrant Democrats in both House and Senate. He heard
an earful, especially from liberal and black lawmakers upset that
Obama surrendered on taxes and agreed to cuts from a budget ledger
built up over the first two years of his term, when Democrats
dominated Congress.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
“They expressed all their frustration,” he conceded after a session
with House Democrats.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
Biden said the deal “has one overwhelming redeeming feature” –
postponing the next debt limit battle until 2013 and leaving the
current fight behind. “We have to get this out of the way to get to
the issue of growing the economy,” he said.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
Rep. Jan Schakowsky, D-Ill., said the Republicans got the better of
the deal.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
“Republicans intentionally created a crisis in order to get their
way,” Schakowsky said. “This is the wrong medicine for a sick
economy. This bill could increase unemployment, slow economic
growth and deepen already historic income inequality.”
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
GOP leaders lobbied their members as well, but with Democratic
leaders and Obama behind the legislation, there was far less
pressure on them than last week, when they were forced to delay a
vote and rewrite an earlier version of the measure to assuage tea
party lawmakers.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
“This measure is not perfect or the way we would have done it if we
were in charge, but it will finally begin to change the way
Washington spends taxpayer dollars,” House Majority Leader Eric
Cantor, R-Va., said. “As is the case with any major change, these
things will take time and this is the first significant move – of
many to come – to turn Washington around.”
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
In the Senate, support from Majority Leader Harry Reid, D-Nev., and
GOP leader Mitch McConnell of Kentucky virtually guarantees the
measure will receive the 60 votes required to pass on Tuesday. The
vote is set for noon, plenty of time to ship the measure up
Pennsylvania Avenue to Obama. The administration has said that
without the new borrowing authority, the government won’t be able
to pay all its bills after Tuesday.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
Enactment of the measure would provide welcome closure for Obama,
who has seen his poll numbers sag during the debt limit battle –
especially as Tuesday’s deadline neared and the stock market
sank.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
GOP presidential candidates such as Mitt Romney and Michele
Bachmann issued statements opposing the legislation.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
“As with any compromise, the outcome is far from satisfying,” Obama
conceded in a video his re-election campaign sent to millions of
Democrats.
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>
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.”
“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>
“text-decoration: none; color: #000066;” rel=”item-license” name=
“b0a0d13f-b8bb-42dd-8c75-2727fad0ef55” href=
“http://hosted.ap.org/dynamic/stories/U/US_DEBT_SHOWDOWN?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-02-08-14-42#b0a0d13f-b8bb-42dd-8c75-2727fad0ef55″> © 2011 The
Associated Press may not be published, broadcast, rewritten or
redistributed. “http://hosted2.ap.org/APDEFAULT/privacy”>Privacy
Policy
