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President Gets Debt Ceiling Bill

Natasha Pesaran |
January 31, 2013 | 9:01 p.m. PST

Staff Reporter

The U.S. Senate authorized a three-month extension of the debt limit on Thursday, meaning the U.S. is an Obama signature away from avoiding defaulting on its obligations.

The Senate voted 64 to 34 to pass the bill, which will allow the $16.4-trillion legal debt limit to be raised until May. One Democrat and a number of Republicans were opposed.

The passage of the legislation will allow the government to continue to borrow money to pay its bills and finance its obligations. It is expected that $490 billion will have been added to the nation’s debt by May 19, bringing the total up to $17 trillion.

The bill has been sent to the White House and awaits President Obama’s signature. It is expected that Obama will be quick to turn the legislation into law.

Now that agreement has been reached on the issue of raising debt ceiling, lawmakers’ attention will turn to the automatic spending cuts which are due to go into effect in March. Congress has so far been unable to find alternative deficit-reduction strategy to the $1.2 trillion in budget cuts. The House and the Senate have until mid-April to draft and pass budget resolutions.

Reach Natasha Pesaran here.



 

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