Obama signs legislation to avert default

WASHINGTON - (AP) - The U.S. avoided a feared and catastrophic default on the American debt, as lawmakers on Tuesday passed a measure that ties an agreement to raise the government's capacity to borrow to steep cuts in government spending.

The Senate passed the measure Tuesday, a day after it passed theHouse of Representatives, and President Barack Obama quickly signedit into law.

The emergency bill increases the nation's $14.3 trillion cap onborrowing, thus avoiding default just hours before the midnightdeadline, and begins the process of curbing the country's spiralingdebt.

The administration had said the government could not pay all itsbills without the new borrowing authority, and it warned thatdefault would severely damage the global economy and push the U.S.back into recession or worse. Even with the legislation now inplace, there are fears that the last-minute sparring could shakerating agencies' confidence and harm the country's Triple-A creditrating.

Though the compromise deal passed, it deeply angered bothconservative Republicans and liberal Democrats. Many Republicanscontended the bill still would cut too little from federalspending; many Democrats said much too much.

A deeply frustrated Obama, while praising Congress for finallypassing the compromise bill, demanded legislators immediately turntheir attention to fixing the economy and creating jobs.

"We've got to do everything in our power to grow this economyand put America back to work," he said, shortly after the Senatevoted 74-26 to pass the measure.

He also said he was not giving up on his insistence thatCongress allow taxes to be raised on big corporations, through anend to loopholes, and the richest Americans once both houses returnfrom their summer recess in early September. The measure that nowbecomes law relies wholly on cutting spending as a tool forlowering the American deficit.

For a news conference with President Obama on the debt ceiling bill, go to your digital cable box and select iO Extra on Ch. 612.

Share on Facebook Tweet on Twitter

advertisement | advertise on News 12

Top 5 Must See

The blaze broke out at the Davidson Avenue 1 Firefighter injured while battling house fire in Lynbrook
United States Attorney General Jeff Sessions promised to 2 AG Sessions to MS-13 on LI: We are coming for you
Sen. Phil Boyle is pushing to make it 3 Sen. Boyle pushes to ban posting violent acts on social media
United States Attorney General Jeff Sessions was met 4 Protesters gather as AG Sessions speaks on LI gang violence
Some residents in Syosset and Woodbury are concerned 5 Syosset, Woodbury residents concerned over new cell towers

advertisement | advertise on News 12

Features

Each week, News 12's Doug Geed explores the Check out fun things to do on the East End!

Explore the Twin Forks with News 12's Doug Geed.

Each week a different shelter visits News 12 Dog Day Fridays Series

Each week a different shelter visits News 12 Long Island with pets up for adoption.

News 12 digs deep to find Long Island's Discover Long Island's Hidden Past

News 12's Danielle Campbell digs into Long Island's roots.

News 12's Lily Stolzberg sees how much Long On The Spot

News 12's Lily Stolzberg sees how much Long Islanders know about everything and anything.

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE