News / USA

US Senate Approves Debt Ceiling Bill

Senate Majority Leader Harry Reid (D-NV) speaks to the media after a closed door meeting with Senate Democrats and Vice President Joseph Biden, at the U.S. Capitol, on August 1, 2011 in Washington, DC.
Senate Majority Leader Harry Reid (D-NV) speaks to the media after a closed door meeting with Senate Democrats and Vice President Joseph Biden, at the U.S. Capitol, on August 1, 2011 in Washington, DC.
Michael Bowman

After months of partisan gridlock, both houses of the U.S. Congress have approved a bill to raise the federal borrowing limit and cut government spending. Tuesday’s 74 - 26 Senate vote came one day after the bill passed in the House of Representatives. The bill goes to the White House to be signed into law by President Barack Obama, on the very day the U.S. government’s ability to cover its obligations was to expire.

U.S. Debt Deal Facts

  • It allows the debt ceiling to rise by up to $2.4 trillion - enough to keep the country borrowing money until 2013.
  • It includes spending cuts that could reach $2.5 trillion, to exceed the amount of the debt ceiling increase.
  • It initally cuts spending by at least $900 billion over 10 years, and creates a bipartisan budget committee to find additional deficit reduction of at least $1.5 trillion.
  • If the committee fails by late November to find additional ways to reduce the deficit, the failure would trigger automatic cuts across the government to take effect in 2013. Among them would be the first reduction in Defense Department spending in decades.
  • The deal does not include the Republicans' goal of requiring a balanced-budget amendment. It also leaves out the Democrats' plan to end some tax cuts for the wealth

Discontent

The Senate vote capped one of the most contentious legislative battles in recent history, one that laid bare deep philosophical differences between Democrats and Republicans as the U.S. government teetered on the edge of insolvency.

Rarely is legislation decried by supporters and opponents alike. Consider this comment by Democratic Senator Tom Udall of New Mexico, who voted for the bill:

“This deal stinks. And it stinks to high heaven,” Udall said.

Democrats blasted the bill for imposing deep spending cuts that could harm the poor and vulnerable without collecting any additional revenue from the affluent. Senator Carl Levin of Michigan said the bill’s only merit is that it averts, for now, the specter of default and financial calamity.

“The choice here is between a faulty piece of legislation, on the one hand, and severe damage to our economy and even-greater joblessness, on the other,” Levin said.


Many Republicans were equally critical, complaining that less than $3 trillion in budget savings over ten years is wholly inadequate for a nation facing a $14.3 trillion national debt.

“This so-called solution does not fundamentally change our spending and debt picture," said Senator David Vitter of Louisiana. "It just plays around the margins. It does not make any big change whatsoever.”

The best other Republicans could say is that the bill constitutes the initial round of a long fight to improve America’s finances. Senator Lamar Alexander of Tennessee put it this way:

“Today’s vote is an opportunity to take an important step in the right direction. We should take it, and then get ready to find ways to take the next step, and the next step, and the next," he said.

The bill

The bill mandates two rounds of federal spending cuts while providing a means to extend the federal borrowing limit through the end of next year. While satisfying Republican demands for no tax increases, it also specifies no cuts to costly programs championed by Democrats that provide income and health care for retirees.

Polls showed the American public angry and disillusioned by the partisanship and gridlock that consumed Washington for months before the eleventh-hour deal was struck.

What do people think?

On vacation in Washington, New Orleans city planner Nathan Schreuer was visiting the Capitol as lawmakers prepared to vote. Asked if his faith in America’s democratic process has been shaken by Washington’s political paralysis of recent months, Schreuer shook his head.

“No, I would say strengthened. I appreciate the fact that we continue to come together with different opinions and find solutions," Schreuer said. "It can always be done better. Democracy is far from perfect. It is a little sloppy.”

Nearby, a group of tourists from China was peering up at the Capitol’s majestic rotunda dome. One man, who declined to be identified, said creditor nations like China want to see America’s fiscal imbalances improve.

“I think this is correct. They [the United States] should save the money, instead of the [Afghan/Iraq] war. They should save the budget, to do education and business instead of other things,” the tourist said.

A woman in the group added that, by making sacrifices now, the United States can assure a better future.

“To suffer a little bit, but things are going to be better. I still think it [the United States] is a strong country,” she said.

Many U.S. lawmakers say preserving that strength during a time of fiscal austerity will be a primary challenge of the years to come.


You May Like

Karzai's Legacy: Missed Opportunities?

Afghanistan's president leaves behind a much different nation than the one he inherited, yet his legacy from 13 years in power is getting mixed reviews More

Video Secret Service Chief Under Fire for White House Security Breach

Julia Pierson faces tough questions from lawmakers after recent intrusion at White House, says: 'It is clear that our security plan was not executed properly' More

Frustrated, Liberian Students Want Ebola Fight Role

Thousands have volunteered to go to counties, rural villages to talk to people in their language about deadly virus More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Malaysia Struggles to Stop People Joining Jihadi
X
Mahi Ramakrishnan
September 30, 2014 2:16 PM
Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Iran's Rouhani Skeptical on Syria Strikes

Iranian President Hassan Rouhani expressed skepticism Friday that U.S.-led airstrikes in Iraq and Syria could crush Islamic State militants. From New York, VOA’s Margaret Besheer reports the president was also hopeful that questions about Iran’s nuclear program could be resolved soon.
Video

Video US House Speaker: Congress Should Debate Authorization Against IS

As wave after wave of U.S. airstrikes target Islamic State militants, the speaker of the Republican-controlled House of Representatives says he would be willing to call Congress back into session to debate a formal, broad authorization for the use of military force. VOA’s Michael Bowman reports from Washington, where legislators left town 10 days ago for a seven-week recess.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Video

Video Ebola Robs Liberians of Chance to Say Good-Bye to Loved Ones

In Liberia, where Ebola has killed more than 1,500 people, authorities have worked hard to convince people to allow specialized burial teams to take away dead bodies. But these safety measures, while necessary, make it hard for people to say good bye to their loved ones. VOA's Anne Look reports on the tragedy from Liberia.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid