By Bonnie K. Goodman
Ms. Goodman is the Editor of History Musings. She has a BA in History & Art History & a Masters in Library and Information Studies from McGill University, and has done graduate work in history at Concordia University.
THE HEADLINES: DEBT CEILING SHOWDOWN: OBAMA VS CONGRESSIONAL LEADERS
IN FOCUS AUGUST 1-2, 2011: DEBT CEILING CRISIS AVERTED HOUSE & SENATE PASS BIPARTISAN COMPROMISE BILL — PRESIDENT OBAMA SIGNS BUDGET CONTROL ACT OF 2011 INTO LAW
- Political Highlights Debt Ceiling Showdown August 1-2, 2011: Debt Ceiling Crisis Averted House & Senate Pass Bipartisan Compromise Bill — President Obama Signs Budget Control Act of 2011 into Law — History Musings, 8-2-11
- Political Highlights Debt Ceiling Showdown July 25-31, 2011: Finally, a Deal! After Week of Partisan Votes in Congress — President Obama, White House, Republican & Democratic Leaders Agree to Debt Deal — Still Needs to Pass House & Senate Votes — History Musings, 8-1-11
- Political Highlights Debt Ceiling Showdown Recap July 18-24, 2011: 2 Plans, 8 Days No Debt Deal in Sight — Will the US Default on August 2, 2011? — History Musings, 7-25-11
SENATE VOTES ON DEBT DEAL — PRESIDENT OBAMA MAKES STATEMENT & SIGNS DEBT BILL INTO LAW RAISING THE DEBT CEILING
Obama signs debt-ceiling deal into law: President Obama has signed into law the bill raising the federal debt ceiling just hours before the Treasury said it could begin running out of money to pay the government’s bills, White House Press Secretary Jay Carney said Tuesday.
President Obama says work not done: After the Senate passed the debt deal and removed the threat of default the day the Treasury was expected to run out of funds, President Obama told the American people from the Rose Garden that “the next phase” of the process involved such things as entitlement and tax reform, extended unemployment benefits and middle-class tax cuts.
He urged Congress to tackle those issues when it returns from its August recess.
“Voters may have chosen divided government, but they sure didn’t vote for dysfunctional government,” Obama said. “They want us to solve problems.”
The president added “While deficit reduction is part of that agenda, it is not the whole agenda.”
Congress approves debt deal, averts U.S. default: The Senate approved a plan, 74 to 26, Tuesday that will increase the federal debt ceiling just hours before the Treasury said it could begin running out of money to pay the government’s bills.
The measure now goes to President Obama, who is expected to sign it shortly. The plan will cut the national debt by at least $2.1 trillion over the next 10 years with no immediate provision for tax increases.
Senate begins vote on debt deal: Approval would send the measure to President Obama and immediately grant the Treasury $400 billion in additional borrowing authority, just hours before a midnight deadline.
- Full Text of the Budget Control Act of 2011 — PDFHow the Senate voted: 74-26 roll call Tuesday — the Senate passed Budget Control Act of 2011 —
YES: 45 Democrats and 28 Republicans
NO: 6 Democrats and 19 Republicans
How the House of Representatives voted: 269-161 roll call Monday — the House passed Budget Control Act of 2011 —
YES: 95 Democrats and 174 Republicans
NO: 95 Democrats and 66 Republicans
“It was a long and contentious debate. And I want to thank the American people for keeping up the pressure on their elected officials to put politics aside and work together.” — President Barack Obama
“We have seen in the past few days that Washington has the ability to focus when there is a timer ticking down and when there is a looming disaster. It shouldn’t take the risk of default, the risk of economic catastrophe, to get folks in this town to get together and do their jobs. Our economy didn’t need Washington to come along with a manufactured crisis to make things worse.” — President Barack Obama
“It may have been messy. It might have appeared to some like their government wasn’t working. But, in fact, the opposite was true. The push and pull Americans saw in Washington these past few weeks was not gridlock. It was the will of the people working itself out in a political system that was never meant to be pretty…. It was a debate that Washington needed to have.” — — Senate Minority Leader Mitch McConnell
The bill passed by the House last night isn’t the bill we’d write if conservatives ran Washington, but it’s a step in the right direction. When I went to NY & said we wouldn’t pass a debt limit increase without spending cuts larger than the hike, skeptics said we were crazy. We’ve proven the skeptics wrong. When Americans stay engaged in their government, there’s no limit to what can get done. Keep up the fight. — Speaker of the House John Boehner
“Never again will any president from either party be allowed to raise the debt ceiling without being held accountable for it by the American people. And in addition to that, without having to engage in the kind of debate we just went thorough. This kind of discussion isn’t something to dread. It’s something to welcome.” — Senate Minority Leader Mitch McConnell
“The American people want to see accountability and cooperation in Washington. And they want to see that we’re working to get our fiscal house in order. This legislation doesn’t get us there. But for the first time in a long time, I think we can say to the American people that we’re finally facing in the right direction.” — Senate Minority Leader Mitch McConnell
“It is the beginning of a process where we are going to change a system in this town. And it also, I think, sends a signal that we can work together to try and produce results.” — House Majority Leader Eric Cantor
“It’s hard to believe that we are putting our best foot forward with the legislation that comes before us today. I’m not happy with it, but I’m proud of some of the accomplishments contained in it.” — House Minority Leader Nancy Pelosi
“There is great incentive created in this committee to deal with tax reform. It is certainly our expectation that that product will include revenue as well as other areas of finding deficit reduction.” — Speaker of the House Jay Carney
“I believe the joint select committee can in fact produce real cuts in spending.” — Speaker of the House John Boehner
Senator Tom Coburn: Why I voted against the debt deal”: “The real debt crisis is not a debate that has been imposed on Washington by Tea Party activists. It is a crisis Washington has imposed on the American people through laziness.” — WaPo, 8-2-11
- Snapshot: Obama signs debt limit bill: Just hours ahead of a deadline to avert an unprecedented default, President Barack Obama, without public ceremony, signs a bill that raises the $14.3 trillion debt ceiling and sets in motion a plan to reduce U.S. deficits over 10 years…. – Reuters, 8-2-11
- Debt Bill Becomes Law; Default Averted: The Senate voted Tuesday to raise the government’s debt ceiling and cut trillions of dollars from its spending, finally ending a fractious partisan battle just hours before the government’s borrowing authority was set to run out.
The bill, which passed 74 to 26 after a short debate devoid of the oratorical passion that had echoed through both chambers of Congress for weeks, was signed by President Obama later on Tuesday.
A few minutes after the vote, President Obama excoriated his Republican opposition for what he called a manufactured crisis that could have been avoided. “Voters may have chosen divided government,” he said, “but they sure didn’t vote for dysfunctional government…. – NYT, 8-2-11
- Fitch: US Debt deal alone won’t sustain AAA rating: The bill to raise the country’s borrowing limit and prevent a possible U.S. debt default passed in Congress. But it not enough for the U.S. to maintain its coveted AAA debt rating, according to Fitch Ratings.
On Tuesday, Fitch said the agreement was an important first step but “not the end of the process.” The rating agency wants to see a credible plan to reduce the budget deficit.
David Riley, managing director at Fitch, told The Associated Press: “There’s more to be done in order to keep the rating in the medium-term.”… – AP, 8-2-11
- Senate passes, Obama signs debt limit bill: President Obama signed a bill to raise the nation’s borrowing limit on Tuesday, just hours after the Senate voted 74-26 in favor of the deal that will cut government spending by trillions and effectively raise the debt ceiling through the end of 2012…. – CBS News, 8-2-11
- President Obama Signs Debt Deal as Next Fight Looms: Hours before the U.S. faced a first-ever default, President Obama signed into law a compromise deal that averts a crisis by raising the debt limit, but signaled that he will not abandon his stalled efforts to raise taxes on the wealthy.
“It’s an important first step to ensuring that as a nation we live within our means, yet it also allows us to keep making key investments in things like education and research that lead to new jobs and assures that we’re not cutting too abruptly while the economy’s still fragile,” Obama said in a statement from the White House Rose Garden before signing the bill.
Moments before his remarks, senators voted 74 to 26 to pass the Budget Control Act, the last hurdle for the controversial measure that was first approved by the House Monday night, making a $2.4 trillion down-payment on the federal deficit over the next 10 years.
Obama’s signature ends a bruising Washington-made crisis that has gripped the country and lifts what the administration has called a “cloud of uncertainty hanging over the economy.”… – ABC News, 8-2-11
- With debt debate over, Obama urges focus on jobs: President Obama marked the end of the “long and contentious” debt-limit debate Tuesday afternoon, lamenting that the “manufactured crisis” has stunted the economic recovery and promising a return to a jobs-focused agenda.
The president spoke from the Rose Garden moments after the Senate gave final approval to the deal by a vote of 74-26. The House had voted for it by a surprisingly comfortable 269-161 margin on Monday.
Obama signed the measure more than an hour after the Senate vote, ensuring that the nation is able to continue borrowing money to pay its bills.
The president called the deficit-reduction measures paired with the debt-limit increase an “important first step to ensuring that as a nation we continue living within our means.” But he also said he would continue to fight for a “balanced” approach when Congress continues the debate this fall.
“I’ve said it before, I will say it again: We can’t balance the budget on the backs of the very people who have born the biggest brunt of this recession,” he said…. – LAT, 8-2-11
- Obama says more needed to boost U.S. economy: President Barack Obama said on Tuesday a just-passed bill to raise the U.S. debt ceiling and cut spending was a first step toward ensuring the United States lives within its means but that more was needed to rebuild the world’s largest economy.
Speaking at the White House, Obama made clear he expects tax reform to emerge from deliberations by a new committee of Democrats and Republicans to be established by the legislation and that a “balanced approach” in which the wealthier pay more taxes is needed for more deficit reduction.
Obama, a Democrat, said uncertainty from the bitter debt debate had been an impediment to business but the economic recovery also suffered from unforeseen problems such as the Japan earthquake and tsunami.
Obama urged Congress to pass stalled trade bills and said he wants tax cuts for the middle class and unemployment benefits extended.
“Both parties share power in Washington. And both parties need to take responsibility for improving this economy,” Obama said shortly after the Senate passed the debt bill and sent it to him for signing into law.
“I’ll be discussing additional ideas in the weeks ahead to help companies hire, invest and expand.”… – Reuters, 8-2-11
- Obama hails passage of debt limit compromise: President Obama hailed a hard-fought, last-minute deal to avert economic catastrophe Tuesday, saying a compromise to cut spending and increase the nation’s $14.3 trillion debt limit marked an “important first step to ensuring that as a nation we live within our means.”
The bill, he said, was the outcome of a “long and contentious debate” to avoid a man-made economic disaster that he described as creating “unsettling” economic uncertainty. He said that while voters chose divided government, “they sure didn’t vote for dysfunctional government.”
“It shouldn’t take the risk of default, the risk of economic catastrophe, to get folks in this town to get together and do their jobs,” the president said. He added: “Our economy didn’t need Washington to come along with a manufactured crisis to make things worse.”
Mr. Obama plans to sign the legislation in a closed-door ceremony Tuesday afternoon. It will effectively increase the nation’s borrowing authority through the end of next year and promises more than $2 trillion in deficit reduction over ten years.
Now that the debt limit fight is effectively over, Mr. Obama and Congressional Democrats say they will pivot to a focus on jobs and the economy, which they say should be Congress’ top priority.
“We’ve got to do everything in our power to grow this economy and put Americans back to work,” Mr. Obama said Tuesday. He called on Congress to extend middle class tax cuts and unemployment benefits, pass trade deals and plow money into infrastructure when it returns from its August recess…. – CBS News, 8-2-11
- Obama signs debt-limit bill into law: The Senate passed a landmark plan to raise the federal debt limit and reduce government spending Tuesday, ending a partisan stalemate that threatened to plunge the nation into default and destabilize the world economy.
The measure was approved by a vote of 74 to 26. It promptly went to President Obama, who signed it into law, giving the government the money to pay its bills ahead of a midnight deadline.
Speaking in the White House Rose Garden after the Senate vote, Obama called the legislation “an important first step” in ensuring that the nation lives within its means, and he said it avoids “cutting too abruptly while the economy is still fragile.” He vowed to keep working for a “balanced approach” to deficit reduction that includes “reforming our tax code so that the wealthiest Americans and biggest corporations pay their fair share.”
The Senate vote came a day after the House voted 269 to 161 to pass the plan, as recalcitrant Republicans and disappointed Democrats rallied around calls to avert the nation’s first default and rein in ballooning deficits. The measure immediately grants the Treasury $400 billion in additional borrowing authority, with more to follow…. – WaPo, 8-2-11
- Debt ceiling bill passes Senate, 74-26: Treasury won an immediate reprieve of $400 billion in new borrowing authority Tuesday, as the Senate gave final approval to a hotly contested debt and deficit-reduction agreement hammered out with the White House Sunday night.
The bipartisan 74-26 roll call followed a 269-161 vote in the House Monday evening and the bill will be quickly signed by President Barack Obama, ending an unprecedented, hard-edged political struggle that pushed the nation to the brink of default.
Indeed, the stakes were far larger than the April shutdown fight, and more than any single event this year, the debt ceiling fight captured all the power—and critics would say extreme risk-taking—of the anti-government backlash that fueled the GOP’s gains in the 2010 elections…. – Politico, 8-2-11
- Done Deal Senate Passes Debt Ceiling Bill 74-26: Members of the Senate this afternoon approved a bill to raise the nation’s debt ceiling, narrowly avoiding the nation’s first-ever default.
The bill garnered broad bipartisan support in today’s 74-26 vote. The House passed the measure yesterday by a vote of 269-to-161, with only two members of the city’s congressional delegation supporting it.
The bill now heads straight to President Barack Obama’s desk for signing…. – NY1, 8-2-11
- Senate Passes Debt Plan to Avert Default: The Senate put an end to months of partisan impasse on Tuesday, passing a landmark budget agreement to raise the debt ceiling and sending the measure to the White House for President Obama’s signature — just hours before the government’s borrowing authority was set to run out at midnight.
The bipartisan vote was 74 to 26 , a margin that belied the intensity of a fight that has left both parties bruised and exhausted.
With the ambivalent support of Congressional leaders in both parties and Mr. Obama, the compromise, which passed the House with bipartisan support on Monday night, averts a potential default on the government’s debt and provides for increases in the debt ceiling to be phased in, with compensating budget cuts, lasting beyond the 2012 elections. Enactment of the legislation would signal a pronounced shift in fiscal policy, from the heavy spending on economic stimulus and warfare of the past few years to a regime of steep spending cuts aimed at reducing the deficits — so far, without new revenues sought by the White House…. – NYT, 8-2-11
- Senate passes debt deal: The Senate approved — and President Obama is likely to sign — $2.4 trillion in budget cuts and a roughly equal amount of additional debt capacity, ending months of gridlock.
The 74-26 Senate vote came just in time to avoid an unprecedented default that Treasury officials predicted could happen if Congress didn’t raise the $14.3 trillion debt limit by today.
The debt drama wasn’t a one-act play. Senate Minority Leader Mitch McConnell, R-Ky., said it would be the “template” for all future debt limit increases…. – USA Today, 8-2-11
- Senate approves bill to raise debt ceiling; sends to President Obama: The Senate voted on Tuesday to approve a deal to raise the nation’s borrowing limit, voting 74-26 for a bill that would cut government spending by trillions and effectively raise the debt ceiling through the end of 2012. The bill will now be sent to President Obama, who is expected to sign it immediately.
The bill was brokered Sunday night in last-minute negotiations between the White House and congressional leaders.
Senate Minority Leader Mitch McConnell, R-Ky., a key player in the negotiations, and Majority Leader Harry Reid,D-Nev., both backed the bill – paving the way for its easy passage in the Senate.
The six Democrats who voted against the measure on Tuesday were sens. Kirsten Gillibrand (N.Y.), Tom Harkin (Ia.), Frank Lautenberg (N.J.), Bob Menendez (N.J.), Jeff Merkley (Ore.) and Ben Nelson (Neb.). Sen. Bernie Sanders, I-Vt., who caucuses with Democrats, also voted against the measure.
Nineteen Republican senators voted against the bill…. – CBS News, 8-2-11
- Debt battle set to draw to close, for now: The United States is poised to step back from the brink of economic disaster on Tuesday when a bitterly fought deal to cut the budget deficit is expected to clear its final hurdles.
Just hours before the Treasury’s authority to borrow funds runs out — risking a damaging U.S. debt default — the Senate and President Barack Obama are expected to approve a deal to cut a bulging deficit and lift the $14.3 trillion debt ceiling enough to last beyond the November 2012 elections.
The bill overcame its biggest obstacle late on Monday when the Republican-led House of Representatives passed the measure despite noisy opposition from both conservative Tea Party members, who wanted more spending cuts, and liberal Democrats angered by potential hits to programs for the poor.
The vote in the Democratic-controlled Senate, due to take place at noon EDT, is expected to be less dramatic. If approved, Obama would sign the bill into law shortly afterward.
That would mark the end of a fierce partisan battle that has paralyzed Washington for weeks and spooked investors already nervous about a weak U.S. economy and Europe’s sovereign debt woes…. – Reuters, 8-2-11
- Senate expected to vote in favor of debt-limit bill: The Senate is set to vote this afternoon on the bill to raise the debt limit that the House approved Monday. Senators are expected to approve it and then send the bill to President Barack Obama for his signature.
With a strong backing from Democrats, including Rep. Gabrielle Giffords, the House on Monday approved raising the nation’s debt ceiling.
The Senate is expected to approve it at noon today, and President Barack Obama is prepared to sign it almost immediately, averting the prospect of an unprecedented default…. – AP, 8-2-11
- House Approved Debt Bill Faces Final Hurdle: The Senate today is expected to sign off on a compromise bill to raise the nation’s debt ceiling and avoid the country’s first ever default on its bills.
The House passed the measure yesterday by a vote of 269-to-161, with only two members of the city’s congressional delegation supporting it.
Once approved, the bill will head straight to President Barack Obama’s desk for signing.
The measure allows for a $2.4 trillion increase to the debt ceiling, but also slashes about $2 trillion from the federal budget. It also means Congress doesn’t have to deal with the debt ceiling again until 2013.
Many Republicans say it still does not cut enough spending, while many Democrats slammed the deal because it does not include tax hikes…. – NY1, 8-2-11
- Republicans Turn to Dealmaker McConnell for Compromise: While Senate Republican leader Mitch McConnell stayed out of the spotlight during much of the negotiations over the U.S. debt limit, the deal that’s headed for approval by Congress today has his fingerprints all over it.
Those who have worked with McConnell say that is typical of the lawmaker from Kentucky, a tight-lipped veteran of 26 years in the Senate who says little in public while wielding broad power behind closed doors.
He “tends to be underestimated by the press, because they don’t see him doing things,” said former Senator Judd Gregg, a New Hampshire Republican and longtime ally. “He’s not at the microphones all the time, so they underestimate his capacity to do things. And he’s the last person in the Senate you want to underestimate.”
The deficit-reduction deal that is set for a Senate vote today is largely a product of direct negotiations among McConnell, President Barack Obama and Vice President Joe Biden, as well as Senate Majority Leader Harry Reid, House Speaker John Boehner and House Minority Leader Nancy Pelosi…. – Bloomberg, 8-2-11
- Senate to Vote on Debt-Ceiling Bill: The Senate is expected at noon Tuesday to sign off on a bipartisan agreement to raise the federal debt ceiling and cut as much as $2.4 trillion from budget deficits, after the House passed the measure 269-161 last night.
The deal is the product of one of the most ferocious fights ever over government spending and political brinksmanship that caused economic uncertainty and continues to threaten the nation’s prized AAA credit rating. Its passage through the Senate makes it likely that Congress won’t break Tuesday’s deadline set by the Treasury Department after which the nation could run out of money to pay all of its bills.
WSJ’s Alan Murray and Joe White join the News Hub panel to discuss Monday evening’s House vote to raise the debt ceiling by $2.4 trillion, and look ahead to Tuesday’s vote in the Senate. WSJ Photo.
Passage in the House came despite the opposition of both conservative Republicans and liberal Democrats, both of whom balked at the deal reached over the weekend between President Barack Obama and congressional leaders.
However, the agreement was expected to obtain the 60 votes needed for it to pass the Senate, paving the way for Mr. Obama to sign it into law Tuesday afternoon…. – WSJ, 8-2-11
- Senate poised to pass debt deal despite criticism from left, right: The Senate will vote at noon Tuesday to approve a bipartisan deal to raise the debt limit by at least $2.1 trillion and send it President Obama before the 11:59 p.m. deadline.
The deal is expected to attract strong support from mainstream senators on both sides of the aisle while the chamber’s most liberal and conservative members will vote no.
It passed the House easily Monday evening by a vote of 269 to 161.
Wall Street, however, did not seem impressed by the deficit-reduction package, as the Dow Jones Industrial Average fell by 0.75 percent and the Standard & Poor’s 500 fell by 1 percent Tuesday morning.
Senators from both parties lined up to praise and criticize the agreement…. – The Hill, 8-2-11
- Obama, GOP brace for ‘Super Committee': It’s a bird … it’s a plane … It’s Super Committee!
As President Obama prepares to sign the debt ceiling agreement later today, lawmakers are already positioning themselves for the special congressional committee that will be assigned to look for $1.5 trillion in debt reduction over the next ten years.
Some observers are joking about whether members of so-called “Super Committee” will don capes and costumes with dollar sign logos, but the political parties are preparing another serious battle over the topics that dominated the debt ceiling debate: Taxes, spending, and the scope of government.
Obama and aides said they will continue pushing the idea that any debt reduction plan must be “balanced,” including not only spending cuts but more taxes from the nation’s wealthiest Americans.
House Speaker John Boehner, R-Ohio, said “it’s going to be pretty hard” for the committee to recommend taxes, and suggested that GOP appointees would block such a move…. – USA Today, 8-2-11
- Obama shifts to the right: President Barack Obama pauses as he speaks from White House briefing room, Sunday, July 31, 2011 in Washington, about a deal being reached to raise the debt limit. (AP)
The most distressing outcome of the deficit hysteria gripping Washington may be what Barack Obama has revealed about himself. It was disconcerting to watch the president slip-slide so easily into voicing the fallacious economic arguments of the right. It was shocking when he betrayed core principles of the Democratic Party, portraying himself as high-minded and brave because he defied his loyal constituents. Supporters may hope this rightward shift was only a matter of political tactics, but I think Obama has at last revealed his sincere convictions. If he wins a second term, he will be free to strike a truly rotten “grand bargain” with Republicans—“pragmatic” compromises that will destroy the crown jewels of democratic reform.
The president has done grievous damage to the most vulnerable by trying to fight the GOP on its ground—accepting the premise that deficits and debt should be a national priority. He made the choice more than a year ago to push aside the real problem—the vast loss and suffering generated by a failing economy…. – CBS News, 8-2-11
- Debt ceiling agreement a fair compromise? — Politico Arena, 7-31-11
- Joe Biden, Mitch McConnell and the making of a debt deal: Almost as abruptly, the compromise started coming together. What happened during a weekend of frenzied negotiations to salvage the deal is a tale of cataclysm narrowly averted, a historic debt-reduction plan that satisfies none of its signatories and a lesson on how even the most dysfunctional political system can be made functional through the injection of fear, finesse and Joe Biden’s old friendships…. – Politico, 8-2-11
- Pols all ‘look like idiots’ during debt crisis, but President Obama takes biggest hit of them all: There are no real winners in the debt-crisis debacle, and in such moments the leader of the country absorbs a larger hit than most.
The tawdry spectacle of governmental paralysis, engineered by take-no-prisoner Tea Party newbies and abetted by Republicans fearful of crossing them, is more reminiscent of a banana republic.
“We all look like idiots,” a dismayed Democratic Party elder complained as Congress lurched toward sidestepping a financial meltdown. “The extremists have taken over the system. This is not a good omen for anyone.”
President Obama, least of all.
Obama got less than a half loaf, but came away with some positives from the shotgun-wedding compromise. He pushed back the next debt extension donnybrook to 2013, guaranteeing this summer’s legislative chaos won’t be rerun during next year’s campaign.
He also averted an even bigger embarrassment – America didn’t, on his watch, default on its debt obligations for the first time in history.
But even Obama loyalists on Capitol Hill privately say he didn’t exactly burnish his leadership credentials in this process. “At the end of the day, voters expect their President to bring people together,” one of them said. “He hasn’t been able to on this.”…. – NY Daily News, 8-2-11
AUGUST 1, 2011: HOUSE VOTES 269-161 FOR DEBT CEILING BILL — GABRIELLE GIFFORDS’S FIRST VOTE IN HOUSE SINCE BEING SHOT — SENATE VOTES NEXT — DEFAULT AVERTED
How they voted: The 269-161 roll call Monday by which the House passed the compromise bill to raise the debt ceiling and prevent a government default.
YES: 95 Democrats and 174 Republicans.
NO: 95 Democrats and 66 Republicans.
House approves raise in federal debt ceiling; bill goes to Senate: The House approved a bill Monday night that raises the federal debt limit and cuts discretionary spending by $1 trillion over the next 10 years, a key step toward averting a government default. The 269 to 161 vote sends the bill to the Senate, which is likely to consider the plan Tuesday — the day that the Treasury has said it would begin running short of cash to pay the nation’s bills. Rep. Gabrielle Giffords cast her first vote in the House since being shot in January, voting yes.
I would like to say this bill solves our problem. It doesn’t. It’s a solid first step.” — Rep. Jeb Hensarling (R) of Texas, the House Republican Conference chairman
“Although not perfect, [it] will begin to change the culture here in Washington.” — House majority leader Eric Cantor (R) Virginia
“Beginning to take steps toward fixing our fiscal problems will in fact provide more confidence for employers in America.” — Speaker John Boehner (R) of Ohio
“The Capitol looks beautiful, and I am honored to be at work tonight… I had to be here for this vote. I could not take the chance that my absence could crash our economy. I have closely followed the debate over our debt ceiling and have been deeply disappointed at what’s going on in Washington. After weeks of failed debate in Washington, I was pleased to see a solution to this crisis emerge.” — Rep. Gabrielle Giffords, D-Arizona
“Gabby is voting to support the bipartisan debt-ceiling compromise. This is a huge step in her recovery, and an example of what we all know — she is determined to get better, and to serve CD8 and our nation. This vote — expected to be very close — was simply too important for her to miss.” — Gabrielle Gifford’s Facebook Page
“There isn’t a name that stirs more love, more admiration, more respect, more wishing for our daughters to be like her than the name of Congresswoman Gabby Giffords. Thank you, Gabby.” — Representative Nancy Pelosi of California, the minority leader
“That’s why I’m here. Nancy [Pelosi] was kind enough to call me.”…
When I went up, she said, ‘Joe. I said, ‘Now we’re both members of the Cracked Head Club.’ You know, I had two craniotomies. For real. They literally took the top of my head off. Twice. Now, the wags in Delaware, when the second operation occurred, wrote and said, ‘Well, it’s because they couldn’t find a brain the first time!’
She and I just commiserated about the steps to recovery. Hers, much more consequential. But it scares the living devil out of you when you’re recovering from a serious operation or injury to your head. But it comes back. And knowing people who’ve been through it and came back was helpful, for me anyway. You know what I mean?
She’s remarkable. She’s remarkable. Will matters. Will matters. I tell you what, she’s the embodiment of a strong, strong woman. Think about what that woman has been through, and think about her determination.
It’s really good. Here I am hugging Gabby and Michele Bachmann. Seriously. I’m being literal. Sure! I like Michele Bachmann. For real. We’re all standing there around and Michele walks up to see Gabby because she cares about her… There is a basic humanity here, man. It matters, between people. I know that sounds corny.”…
He then recalled what he said was one of the most emotional moments he ever saw. Hubert Humphrey, the former vice president and US senator from Minnesota, was dying of cancer and made an appearance on the Senate floor. “He could hardly walk. He walked into the well. And Barry Goldwater got out of his seat, hugged him in the well, and the both embraced each other for a good three minutes, crying. These were arch, arch, arch ideological enemies. There’s a lot of humanity left here.” — Vice President Joe Biden Boston Globe, 8-1-11
House approves debt deal a day before deadline – Reuters, 8-1-11
- WaPo, 8-2-11
- House OKs debt; Giffords brings down the House: Crisis legislation to yank the nation past the threat of a historic financial default sped through the House Monday night, breaking weeks of deadlock. The rare moment of cooperation turned celebratory when Rep. Gabrielle Giffords strode in for the first time since she was shot in the head nearly seven months ago.
The vote was 269-161, a scant day ahead of the deadline for action. But all eyes were on Giffords, who drew thunderous applause as she walked into the House chamber unannounced and cast her vote in favor of the bill.
A final Senate sign-off for the measure is virtually assured on Tuesday. Aside from raising the debt limit, the bill would slice federal spending by at least $2.1 trillion, and perhaps much more.
“If the bill were presented to the president, he would sign it,” the White House said, an understatement of enormous proportions…. – AP, 8-1-11
- House Passes Deal to Avert Debt Crisis: After months of partisan impasse, the House on Monday approved a budget agreement intended to head off a potential government default, pushing Congress a big step closer to the conclusion of a bitter fight that has left both parties bruised and exhausted. Despite the tension and uncertainty that has surrounded efforts to raise the debt ceiling, the vote of 269 to 161 was relatively strong in support of the plan, which would cut more than $2.1 trillion in government spending over 10 years while extending the borrowing authority of the Treasury Department. It would also create a powerful new joint Congressional committee to recommend broad changes in spending — and possibly in tax policy — to reduce the deficit.
Scores of Democrats initially held back from voting, to force Republicans to register their positions first. Then, as the time for voting wound down, Representative Gabrielle Giffords, Democrat of Arizona, returned to the floor for the first time since being shot in January and voted for the bill to jubilant applause and embraces from her colleagues. It provided an unexpected, unifying ending to a fierce standoff in the House.
The Senate, where approval is considered likely, is scheduled to vote at noon on Tuesday and then send the measure to Mr. Obama less than 12 hours before the time when the Treasury Department has said it could become unable to meet all of its financial obligations…. – NYT, 8-1-11
- Debt-ceiling bill clears House. Now, hopes that Round 2 will be better: With the House passing a debt-ceiling bill Monday, and end of the debt crisis is in sight. But more cutting lies ahead, and both sides are hopeful they’ll get more of what they want…. – CS Monitor, 8-1-11
- Debt deal easily clears House, final passage likely: Congress was poised to send President Obama a compromise deficit-reduction package topping $2 trillion Tuesday, just hours before the nation could run out of borrowed money to pay its bills.
After months of bitter partisan wrangling, the House on Monday easily approved the landmark measure raising the nation’s $14.3 trillion debt limit by a 269-161 vote. The Senate is expected to approve it at noon Tuesday, and Obama is prepared to sign it almost immediately, averting the prospect of an unprecedented default…..
Republican leaders boasted that they got two-thirds of the spending cuts they sought, leading GOP House members to vote 174-66 in favor of the bill. Democrats who split 95-95 on the measure were left to highlight the cuts they averted…. – USA Today, 8-1-11
- Debt deal clears House on 269-161 vote; Senate passage expected Tuesday: A bipartisan bill to increase the nation’s debt limit and cut as much as $2.4 trillion in government spending passed the House of Representatives, overcoming the key hurdle on the road to averting an unprecedented federal default.
The legislation, which passed Monday evening by a relatively comfortable 269-161 margin, came after a weekend of tense meetings, exhausted staff discussions and, in the end, a compromise worked out at the highest levels of government. If passed by the Senate on Tuesday, which is widely expected, it will end a months-long standoff between a new Republican House majority, which refused to pass an increase without a deficit reduction package, and the Democratic majority in the Senate and President Barack Obama…. – Bellingham Herald, 8-1-11
- House passes debt ceiling agreement; Senate vote expected Tuesday: The U.S. House on Monday passed the debt-ceiling deal worked out by President Barack Obama and congressional leaders, sending it to the Senate for consideration a day before the deadline for the government to face possible default.
A Senate vote was expected Tuesday, according to multiple Senate leadership aides from each party…. – CNN, 8-1-11
- Pelosi rallies Dems to help pass debt plan: House minority leader Nancy Pelosi of San Francisco provided 95 Democratic votes – half of her caucus – to approve a $2 trillion-plus, 10-year debt-reduction package Monday that helped make up for a slew of defections by Tea Party-backed Republicans.
Pelosi urged Democrats to swallow hard on the package, which did not include new taxes as they had wanted, to save the nation from a potentially calamitous cash shortfall. The final vote was 269 to 161, with 66 Republicans voting no on grounds that the spending cuts did not go deep enough.
Rep. Gabrielle Giffords,the Arizona Democrat shot in the head by a gunman in January, made a dramatic entrance onto the House floor to cast her vote for the deal…. – San Francisco Chronicle, 8-1-11
- House Passes Compromise Debt Bill: 7:42 p.m. | Updated The House of Representatives approved the debt ceiling bargain negotiated over the weekend by President Obama and leaders from both parties, sending the measure to the Senate. Final approval that could come Tuesday.
Senator Harry Reid of Nevada, the majority leader, told his colleagues that the Senate will take up the debt bill at noon on Tuesday, just hours before the midnight deadline when the nation’s borrowing authority will run out.
The final vote was 269 to 161, with 66 Republicans and 95 Democrats voting no. Many Democratic lawmakers joined dozens of Tea Party-backed Republicans in calling it a bad deal for the country. But the complicated legislation to raise the debt ceiling by $2.1 trillion earned the support of members from both parties to win approval.
Senators said they planned to take up the legislation as soon as Monday evening or Tuesday, hours before a deadline that might have led to a federal default.
The passage came in dramatic fashion as Representative Gabrielle Giffords, Democrat of Arizona, made her first appearance back in the chamber since she was shot in the head by an assailant during a meet and greet in her district. Members in both parties stood up for a long and enthusiastic standing ovation for Ms. Giffords, who entered dressed in a teal shirt and with her brown hair trimmed short. She has been recuperating since the shooting and it had been unclear when she would return…. – NYT, 8-1-11
- Giffords Returns, as Does Unity, Briefly: With two minutes to go and roughly 20 votes needed to pass a bill to raise the nation’s debt limit, a smattering of applause rippled from a corner of the House chamber. After a few seconds of confusion, a flash of teal jacket could be seen almost floating among a sea of Democrats.
There she was, Representative Gabrielle Giffords of Arizona, appearing unexpectedly Monday evening to cast one of the last votes needed to send the measure over the top.
The full chamber erupted in loud applause as Representative Kevin McCarthy of California, the House whip, flicked his eyes from the vote board to Ms. Giffords. It was the first time she had been in the chamber since she was critically injured in an assassination attempt in January in Tucson…. – NYT, 8-1-11
- Rep. Giffords casts debt-limit vote on House floor: As minutes remained on a critical vote to raise the debt limit, Rep. Gabrielle Giffords burst onto the House floor Monday and cast a “yes” vote, the first time the Arizona Democrat had voted since a gunman shot her in the head at a political event in Tucson seven months ago.
Lawmakers, tense after weeks of contentious negotiations, erupted into applause as Giffords entered the chamber accompanied by her close friend and colleague Rep. Debbie Wasserman Schultz, D-Fla., and her husband, space shuttle astronaut Mark Kelly. Giffords waved and said, “Thank you” as her colleagues gave her a standing ovation.
Giffords, who wore glasses and a teal blazer, turned to watch the tally as voting ended on the debt-ceiling compromise package….
Vice President Biden said Pelosi told him earlier Monday that Giffords would return to the House. “That’s why I’m here,” Biden said…. – USA Today, 8-1-11
- Julian Zelizer on House Debt Deal Vote: Many bills that eventually take on big issues start as a modest, first step, says Julian Zelizer, a congressional historian at Princeton University, citing the 1957 civil rights bill, which disappointed most of its supporters for not going far enough to redress the nation’s record on civil rights.
President “Lyndon Johnson pushed back against liberals saying, ‘If I can get Southerners to vote for something, you can do more down the road,’ ” he says.
“The debt deal is trying to give some assurance that it’s a first step and will continue,” he adds. “The legislation is vague enough about this new committee that everyone can look at it and think that the committee will later give them what they want.”… – CS Monitor, 8-1-11
- Deal Was Forged Over Choices and Chinese Food: Last Friday night, President Obama called Speaker John A. Boehner just after the Republican House leader had gotten his rebellious Republicans, on the third effort, to pass legislation to address the debt crisis.
“Congratulations on finally getting your bill through,” Mr. Obama said, according to a Democrat familiar with the conversation. “You know you’re not going to get through the Senate, so now we need to focus on a solution.”
Roughly 48 hours later, at 8:15 on Sunday night, the president again called Mr. Boehner from the Oval Office.
“Do we have a deal?” Mr. Obama asked, then stopped abruptly. His senior advisers, standing nearby, gathered that Mr. Boehner had interrupted the president, and they braced for confirmation of the worst in Mr. Obama’s next words. Instead, there was relief.
“Congratulations to you, too, John,” Mr. Obama finally said….. – NYT, 8-1-11
AUGUST 1, 2011: BIPARTISAN OPPOSITION TO DEBT DEAL — CONGRESS FIRST TO VOTE ON DEBT DEAL THEN THE SENATE
Budget Office says debt deal will save at least $2.1 trillion: The Congressional Budget Office confirmed Monday that the debt-reduction deal struck by the White House and congressional leaders would cut deficits by at least $2.1 trillion over the next 10 years, if lawmakers approve the plan later Monday.
The independent budget analysts reconfirmed that it contains up front savings of $917 billion, the same level as initially proposed in legislation offered by House Speaker John A. Boehner (R-Ohio) last week, and it credited President Obama and the leaders with at least $1.2 trillion in savings for the follow-on work to be done by a special committee.
“Despite what some Republicans have argued, I believe that we have to ask the wealthiest Americans and biggest corporations to pay their fair share by giving up tax breaks and special deductions. Despite what some in my own party have argued, I believe that we need to make some modest adjustments to programs like Medicare to ensure that they’re still around for future generations. That’s why the second part of this agreement is so important.” — President Barack Obama
“I am relieved to say that leaders from both parties have come together for the sake of our economy to reach a historic, bipartisan compromise that ends this dangerous standoff. The compromise we have agreed to is remarkable not only because of what it does, but because of what it prevents: a first-ever default on the full faith and credit of the United States.” — Senate Majority Leader Harry Reid
We got 98 percent of what we wanted… It would also guarantee the American people the vote they have been denied in both chambers on a balanced budget amendment, while creating, I think, some new incentives for past opponents of a BBA to support it.” — Speaker of the House John Boehner
“There is nothing in this framework that violates our principles. It’s all spending cuts. The White House bid to raise taxes has been shut down…. Now listen, this isn’t the greatest deal in the world. But it shows how much we’ve changed the terms of the debate in this town.” — Speaker of the House John Boehner
“I became convinced that even though my friend, [majority leader Reid], and I would love to work this out, we can’t do it by ourselves. It has to have the only person who can sign something into law. There are 307 million Americans, but only one can sign something into law.” — Senate Minority Leader Mitch McConnell
Reid says debt limit vote in Senate by Tuesday: Senate Majority Leader Harry Reid said Monday that debt limit increase legislation would be completed in the Senate by Tuesday. “This vote could happen either tonight or tomorrow,” Reid said on the Senate floor. – Reuters, 8-1-11
Highlights of the bipartisan debt-ceiling deal — LAT
- For debt-ceiling deal to become law, what needs to happen by Tuesday: Selling the debt-ceiling deal to a critical mass of lawmakers is a formidable political reach. Many conservatives say the deal doesn’t go far enough, while some liberals say the richest Americans should have to pay more taxes…. – CS Monitor, 8-1-11
- Several Steps Remain Before the Debt Ceiling Is Raised: During the next 60 hours, the legislative leaders who shook hands with each other must sell the deal to their wary members, something that could still pose a thorny political challenge.
And then — with the Tuesday deadline for a default looming — they must turn the “framework” into legislative language and pass it through both chambers of Congress — not an easy task for institutions, especially the Senate, which are not known for moving with haste…. – NYT, 8-1-11
- House begins debate on debt limit compromise: Congress has started debating the debt limit compromise negotiated by President Barack Obama and Republican leaders.
The GOP-run House began considering the bill less than a day after the White House and top lawmakers reached agreement on a dispute that had locked them in deadlock for months…. – AP, 8-1-11
- House begins debate on debt limit compromise: Congress has started debating the debt limit compromise negotiated by President Barack Obama and Republican leaders.
The GOP-run House began considering the bill less than a day after the White House and top lawmakers reached agreement on a dispute that had locked them in deadlock for months…. – AP, 8-1-11
- Pleasing Few, Debt Deal to Go to Vote: Democratic and Republican leaders in the Congress began making their final arguments on behalf of Sunday’s debt ceiling deal to skeptical members in advance of votes in both chambers that could come as early as Monday afternoon.
With only one day left before Tuesday’s looming deadline that carries the threat of a federal default, Vice President Joseph R. Biden arrived at the Capitol for back-to-back, closed-door meetings with Democratic lawmakers in the House and Senate. Republicans in the House and Senate also huddled in advance of the votes.
The last-minute wrangling on Monday morning reflected the lack of enthusiasm for the debt deal as lawmakers, party activists and pundits expressed relief but little excitement for a compromise that appears to have left few partisans eagerly promoting the deal as the one that they wanted.
On the Senate floor on Monday, Senator Harry Reid of Nevada, the majority leader, said, “People on the right are upset. People on the left are upset. People in the middle are upset.” But he called it a “remarkable agreement which will protect the long-term health of our economy.”
Mr. Reid said that the Senate is likely to take a final vote on passage of the deal later today. Republican aides in the House said that voting could begin as early as 2 p.m., though neither chamber had yet told members exactly when to expect final votes on the legislation.
Most of the leading 2012 Republican presidential candidates weighed in Monday in opposition to the debt ceiling deal, saying that it does too little to address the nation’s spending problem. Mitt Romney, the former governor of Massachusetts, said the deal “opens the door to higher taxes and puts defense cuts on the table..”… – NYT, 8-1-11
- Debt deal: $32.4 billion per page: The debt framework President Obama and congressional leaders reached Sunday night runs 74 pages long, and could authorize as much as $2.4 trillion in new debt — or $32.4 billion per page.
That debt increase will get the country through the 2012 election, both sides said, but it does not bring to an end the sea of red ink that will continue to wash over the federal government for the foreseeable future.
In the near term, the bill sets budget numbers for 2012 that would require a real cut of $7 billion in discretionary spending from 2011 levels, though that’s $25 billion less than projected spending would have been had it kept pace with inflation.
Over the long term, the deal could lead to as much as $2.4 trillion in lower-than-projected spending over the next decade, which also works out to about $32.4 billion per page in lower spending — if all of the conditions are met. But during those 10 years, that still means the country could pile up another $10.4 trillion in new debt, which would leave the government well more than $20 trillion in debt by the end of the decade…. – Washington Times, 8-1-11
- Obama: Debt debate will continue: President Obama’s 2012 re-election campaign e-mailed a brief address from the president, describing the recent battle with Republicans as a phase in a long-running effort to forge a “balanced” debt reduction package that includes new tax revenue as well as budget cuts.
“This chapter is over. That work and that debate continue. This has been a tense debate because the stakes were so high.”
Though grateful that the agreement heads off a government default, Obama said the agreement is “far from satisfying” and he will urge a new special congressional committee to cut federal debt with taxes as well as less spendng. “The ultimate solution must be balanced,” Obama said…. USA Today, 8-1-11
- House vote first test of debt-ceiling bill: The first test of legislation to raise the nation’s debt ceiling comes in the House, which plans to vote Monday evening on the plan agreed to by party leaders Sunday.
Senate Majority Leader Harry Reid said the Senate would work to take up the plan Monday as well, though that would be a challenge given traditional delaying tactics that may be employed.
Passage in either chamber is far from assured. Some Republicans are objecting to the possibility of steep cuts in defense spending, while others continue to oppose any debt-ceiling increase. Liberal Democrats think the so-called compromise was more like a cave-in…. – LAT, 8-1-11
- House Debt Vote Expected Monday Afternoon: The House of Representatives could begin voting as early as 2 p.m., Eastern time, on the debt ceiling compromise announced by President Obama and Congressional leaders on Sunday night, a House leadership aide said.
In a brief message on Twitter, Erica Elliott, the press secretary for Representative Kevin McCarthy, Republican of California, the majority whip, announced the tentative schedule.
It was not immediately clear when the Senate might vote on Monday…. – NYT, 8-1-11
- Debt-Limit Deal to Get Congress Vote Today: Congressional leaders, leaving no extra time before a default threatened for tomorrow, are racing to push through a compromise sealed with President Barack Obama last night to raise the U.S. debt limit by at least $2.1 trillion and slash government spending by $2.4 trillion or more. The House plans votes today and the Senate may follow suit to consider the agreement reached during a weekend of negotiations that capped a months-long struggle between Obama and Republicans over raising the $14.3 trillion debt ceiling. Megan Hughes reports on Bloomberg Television’s “First Look.” (Source: Bloomberg)
Congressional leaders, leaving no extra time before a default threatened for tomorrow, are racing to push through a compromise sealed with President Barack Obama last night to raise the U.S. debt limit by at least $2.1 trillion and slash government spending by $2.4 trillion or more.
The House plans votes today and the Senate may follow suit to consider the agreement reached during a weekend of negotiations that capped a months-long struggle between Obama and Republicans over raising the $14.3 trillion debt ceiling.
Both parties were working to sell the deal to their rank and file — meeting resistance from social liberals who fault it for failing to increase taxes and from fiscal conservatives who say it’s insufficient to rein in the debt…. – Bloomberg, 8-1-11
- House races toward Monday debt ceiling vote: The House is racing toward a Monday evening vote to raise the debt ceiling, as congressional leaders furiously round up the votes necessary to push the plan through before Tuesday’s deadline.
Senate leaders plan to take up the bill shortly after, where Senate Minority Leader Mitch McConnell says enough votes will be lined up for the bill to pass.
House leaders are still gauging support for the measure. House Republicans will meet at 12:30 and House Democrats are caucusing with Vice President Joe Biden — who got a standing ovation when he walked into the meeting today.
Biden laid out in candid terms what the White House had to do to get a deal.
“Elections have consequences,” Biden told Senate Democrats, according to a senator in the room. The vice president characterized the fight as a hostage situation, saying Republicans have a “gun to their heads,” the source said…. – Politico, 8-1-11
- Debt-ceiling compromise: Now, it’s time to find the votes: Vice President Joe Biden will meet Monday with the Senate and House Democratic caucuses while Republican leaders also huddle to gauge support for the debt-ceiling plan negotiators agreed to Sunday.
The legislative path for the bill was still somewhat unclear as individual members study the details. No votes had been scheduled yet in either the House or Senate on Monday, but could be added once party leadership takes the temperature of their respective caucuses. House Speaker John A. Boehner (R-Ohio) told members Sunday night that the bill would move quickly to the floor, perhaps as early as Monday afternoon…. – LAT, 8-1-11
- House to vote before Senate on raising debt ceiling: The House of Representatives will vote before the Senate on the bipartisan plan to raise the debt ceiling, according to two House GOP leadership sources…. – CNN, 8-1-11
- House vote could be squeaker: A Democratic official involved in the effort to secure the votes in the House and Senate for the debt deal says there is more concern about the vote tally in the House than the Senate, where it looks like it will get the 60 votes needed without much drama.
In the House, Democrats who favor the deal are concerned about a very close vote – maybe a squeaker.
Vice President Joe Biden will meet with the House Democratic caucus at noon to answer questions, soothe concerns, and help shore up reluctant Democrats.
Even though Biden is coming over to meet with Democrats and has planned to come out to the media stakeout afterwards, it’s unclear from Democratic aides at this point how many of the Democratic leaders, including Minority Leader Nancy Pelosi, will stand with Biden and say they will support the bill…. – CNN, 8-1-11
- The debt ceiling battle at a glance:
A compromise agreement to raise the nation’s borrowing limit has been reached The House and Senate are expected to vote today The House Speaker says the agreement does not violate Republican principles Some Senate Democrats are grumbling, an aide says, but the chamber is expected to approve the deal
President Obama and congressional leaders have agreed to a plan that would lift the nation’s credit limit and avoid an unprecedented default on its debt, which could have widespread economic ramifications ranging from higher interest rates to a predicted stock market crash. Congress still must approve the deal by Tuesday. Here’s the situation at a glance… – CNN, 8-1-11
- Democrats seem to end up on short end of the deal: The deal struck by the White House and congressional leaders to raise the nation’s debt ceiling has the feel of a classic compromise, full of give and take.
There is no requirement for a balanced budget amendment, no second showdown over the nation’s borrowing limit before the 2012 elections and, according to some conservatives, not nearly enough in cuts.
But for weeks and months Republicans have warned Democrats they would only accept a deal that cut spending without raising taxes.
And the deal that faces a final congressional vote Monday does exactly that. The deal includes $1 trillion in cuts over 10 years. It sets up a congressional committee that could consider tax reform as it seeks a strategy for deeper debt reduction. On Monday, the Congressional Budget Office confirmed that the deal would cut deficits by at least $2.1 trillion over the next 10 years…. – WaPo, 8-1-11
- Obama, Boehner Suffering ‘Monday Morning Hangover': President Obama and House Speaker John Boehner, along with Senate Majority Leader Harry Reid, did something most considered a long shot – they agreed on a budget deal and the talking points that go with it.
But the Monday morning hangover plaguing Obama and Boehner as a result of Sunday night’s celebration may last longer and produce bigger headaches than either anticipated.
Vice President Joe Biden was dispatched to the Capitol early Monday to meet with Democratic lawmakers in both the House and Senate to convince lawmakers the latest deal is the way to go. Republicans were also huddling to see if they have enough votes for a Monday afternoon roll call.
Reid took to the senate floor Monday morning, calling the weekend deal a “remarkable agreement which will protect the long-term health of our economy.”
“People on the right are upset. People on the left are upset. People in the middle are upset,” said Reid in his remarks.
President Obama, seemingly tired and frustrated after a tense round of negotiations, called reporters together saying the compromise “allows us to avoid default and end the crisis that Washington imposed on the rest of America.”… – Christian Post, 8-1-11
- Debt Deal: Some Read It and Weep, Others Swallow Hard and Nod: Liberals and conservatives woke up on Monday morning and began assessing the last-minute debt ceiling deal reached by leaders in Washington over the weekend.
Many liberals are grousing about President Obama’s willingness to abandon some of the things he had demanded. Some conservatives are griping that the deal doesn’t do enough to cut spending. And some members of both parties are declaring the deal good enough, if not exactly great…. – NYT, 8-1-11
- McCain says he’ll ‘swallow hard’ and support deal: Sen. John McCain says he’ll vote for compromise legislation averting a government default, although “I will probably have to swallow hard.”
The Arizona Republican who lost to Barack Obama in the 2008 presidential election says he’s concerned about the impact of the deficit-reduction deal on defense spending.
But McCain also tells CBS’s “The Early Show” that officials in Washington realized “we were not going to let the government shut down.”… – AP, 8-1-11
- Sen. Marco Rubio will vote against debt ceiling deal: The South Florida Congressional delegation says it will likely approve the tentative deal struck Sunday night to raise the debt ceiling but Sen. Marco Rubio is a holdout…. – Miami Herald, 8-1-11
- GOP presidential hopefuls unhappy with debt-ceiling deal: Some of the Republicans who want to kick President Obama out of office next year are sounding off today with their opposition to a deal the White House reached with congressional leaders to raise the debt ceiling…. – USA Today, 8-1-11
- Romney opposes debt deal: Mitt Romney said Monday he opposes the compromise to raise the nation’s debt ceiling, becoming the second Republican presidential contender to oppose a deal backed by President Barack Obama and congressional leaders in both parties.
The plan, which supporters say is needed to avert a looming fiscal crisis, opens the door to tax increases and defense cuts, the former Massachusetts governor said in a statement.
“President Obama’s leadership failure has pushed the economy to the brink at the eleventh hour and 59th minute,” Romney said. “While I appreciate the extraordinarily difficult situation President Obama’s lack of leadership has placed Republican members of Congress in, I personally cannot support this deal.”
The statement represents the most substantive comment to date from Romney, the early frontrunner in the Republican presidential field, who has largely avoided weighing in on daily developments in the high-stakes debate. The issue, as the nation’s economy in general, is likely to dominate the 2012 contest…. – AP, 8-1-11
- Debt and budget bill saves more than $2T: A new study says the debt and budget bill backed by President Barack Obama and congressional leaders would save taxpayers at least $2.1 trillion over the coming decade.
The Congressional Budget Office analysis says the initial down payment of spending cuts — tight “caps” on the operating budgets of Cabinet agencies like the departments of Defense and Education — would produce more than $900 billion in savings over 10 years…. – AP, 8-1-11
- Congressional Leaders to Pitch Debt-Reduction Compromise to Caucuses: Democratic and Republican leaders in both chambers of Congress will meet with their caucuses Monday for a hard sell of a compromise debt-reduction package that gives President Obama up to a $2.5 trillion hike in the debt limit as long as lawmakers can find an equal or greater amount in spending cuts.
But even if they can’t come up with solutions, the cuts will be found for them.
Obama announced Sunday night that leaders of both parties in both chambers reached an agreement on a debt-reduction deal that will “lift the cloud of uncertainty that hangs over our economy” and prevent the nation from potentially defaulting on the U.S.’s financial obligations…. – Fox News, 8-1-11
- Congress moving quickly on debt and spending deal: Congress is moving quickly on an agreement to avert a potentially devastating default on U.S. obligations, with legislation that mixes a record increase in the government’s borrowing cap with the promise of more than $2 trillion in spending cuts.
After a tense weekend of bargaining, President Barack Obama and congressional leaders announced the agreement Sunday night, providing an instant boost to Asian financial markets and a huge dose of relief to an administration and Congress frazzled by months of partisan warfare and the chance that a default could send the still-fragile economy into recession.
The Senate seems likely to vote first on the measure while House GOP leaders work to assemble support for it. Democratic votes are certain to be needed to pass the measure in the Republican-dominated House, just as Republicans will be needed to clear the measure through the Democratic Senate. Liberal Democrats were already carping that Obama had given away too much to GOP leaders…. – AP, 8-1-11
- Obama announces budget deal: President Barack Obama, addressing the nation Sunday, announced a bipartisan, bicameral deal to end a dangerous impasse over raising the debt ceiling, marking the start of a process to avert a catastrophic national default on Tuesday.
A somber Obama — decrying a process that has been “messy” and has “taken far too long” — made his announcement moments before House Speaker John Boehner (R-Ohio) took the two-part package of $2.5 trillion in cuts to a skeptical GOP conference. The agreement came after a day of frenzied negotiations over “triggers” that will be used to determine the make-up of the final $1.5 trillion in cuts.
“We’re not done yet,” Obama told a smattering of reporters gathered in the White House briefing room. “Despite what some Republicans have argued I believe we have to ask the wealthiest Americans and biggest corporations to pay their fair share … and despite what some in my own party have argued I believe that we need to make some modest adjustments to programs like Medicare to assure that they’re still around for future generations,” he said, acknowledging the opposition of tea party conservatives and liberal Democrats…. – Politico, 8-1-11
- Analysis: Bipartisan debt-limit deal means bipartisan opposition for Obama, Boehner: The newly struck debt-ceiling compromise between President Barack Obama and the Republican leaders of Congress represents a historic accomplishment of divided government, with all the disappointment that implies for the most ardent partisans inside the two major parties and out.
But it marks an accomplishment nonetheless between a Democratic president elected in 2008 and the Republicans who, Obama memorably said, handed his party a “shellacking” at the polls two years later.
The tea party conservatives won’t like it, regretting it doesn’t cut spending by more. “Someone has to say no, I will,” Rep. Michele Bachmann of Minnesota said in a statement emailed from Iowa Sunday night, where she was courting Republicans for her 2012 presidential bid.
Neither will the liberal Democrats, unhappy that it cuts at all. “This deal weakens the Democratic Party as badly as it weakens the country. We have given much and received nothing in return,” said Rep. Raúl M. Grijalva, an Arizona Democrat and co-chair of the Congressional Progressive Caucus.
Which means that Obama and his principal Republican antagonist, Speaker John Boehner, will share responsibility for passing it in the House…. – AP, 8-1-11
- US debt limit really doesn’t limit debt: The federal debt limit is a triumph of false advertising. It doesn’t really limit the national debt. Whenever the false ceiling has been reached, it has been raised — forcing unpopular votes in Congress, but not the really hard ones it would take to cut spending, raise revenues and balance budgets.
Ranting about the debt is easier than taming it. So the same political theatrics are played over and over again. The debt limit has been raised 78 times since 1960. The current hassle over No. 79 is more contentious and divisive than the previous rounds because of hardened lines in Congress, not only between Democrats and Republicans but within their rosters, especially on the GOP side where about 80 freshmen sent by tea party voters consider compromise a crime.
The hypocrisy of the whole process was summed up by an expert witness, Barack Obama, now the president championing a debt limit increase, when he tried to explain his own vote as junior senator from Illinois to oppose the raise then-President George W. Bush sought…. – AP, 8-1-11
- Obama: We have a deal: The nation’s top lawmakers and President Obama announced late Sunday they have reached a deal to raise the debt ceiling and dramatically curb federal spending.
“I want to announce that the leaders of both parties, in both chambers, have reached an agreement that will reduce the deficit and avoid default,” Obama said Sunday night.
Obama said that while the process was messy, and had taken far too long, the nation would, in the end, avoid a costly default and economic catastrophe.
A short time before Obama spoke, Sens. Harry Reid and Mitch McConnell said that a framework had been agreed to…. – CNN Money, 8-1-11