A day after President Barack Obama announced to the nation that leaders from both parties had achieved a compromise deal to lift the debt ceiling, the House of Representatives voted to pass the new debt bill, now known as the Budget Control Act of 2011.
On Monday evening, in a 269-161 vote, the House overcame challenges from the ideological wings of both parties to pass the compromise bill, which was primarily negotiated by Senate Minority Leader Mitch McConnell (R-Ky.) and Vice President Joe Biden.
The centrist coalition—led by House Speaker John Boehner (R-Ohio)—that ended up voting in favor of the bill overcame challenges from progressive Democrats furious about the potential for future cuts to entitlements, and the lack of any tax increases to reduce the deficit, and Republican congressmen who are worried about the cuts to defense spending.
Congresswoman Gabrielle Giffords (D-Ariz.), who was greeted with a standing ovation from her colleagues, appeared on the floor of the House for the first time since her shooting in Tucson, Ariz., back in early January. She voted for the bill.
A Senate vote on the bill is scheduled for Tuesday, Aug. 2. If passed, the legislation would allow the debt ceiling to be raised in time to avoid a potential situation in which the Treasury would not be able to pay all of its obligations.
The White House and congressional leaders from both sides gave public statements on Monday conceding that while the bipartisan bill was not perfect, it was a substantive compromise that needed to be passed in order to avoid the potentially catastrophic consequences that would result from a failure to raise the debt ceiling. Leaders from both sides praised the ability of the negotiators to come together to compromise at the eleventh hour.
“Now, this was a mess,” said White House Press Secretary Jay Carney, referring to the bipartisan deal, during Monday’s White House press briefing. “There is no question, it was a circus at times. We unnecessarily sent the message around the country and the globe that the United States might in fact default on its obligations for the first time in its history. But in the end, compromise won out, and an agreement that we believe strongly is in the interest of the American people was achieved.”
“This legislation is typical for compromise legislation,” said Senate Majority Leader Harry Reid (D-Nev.) during a Monday press conference. “Neither side got what they wanted, but it’s the essence of compromise.”
According to a report released by the bipartisan Congressional Budget Office (CBO), the Budget Control Act would trim at least $2.1 trillion from federal spending over the next decade, and includes a debt ceiling increase that would last until 2013, which had been a sticking point for Democrats.
Also according to the CBO report, the new bill contains an immediate spending cut of $917 billion, paired with a similarly sized debt limit increase. A special committee consisting of members of both parties and from both chambers of Congress would then be tasked with finding additional cuts of up to $1.5 trillion over the next decade. In the event the committee fails to come to an agreement, or if their recommendations do not satisfy the wider Congress, across-the-board spending cuts of $1.2 trillion would be automatically triggered.
In any case, the cumulative amount of spending cuts would amount to somewhere between $2.1 and $2.4 trillion, exceeding the planned debt-ceiling increase, which had been a sticking point for the deficit-hawk Republicans.
Other provisions in the Budget Control Act include the establishment of caps on discretionary spending through fiscal year 2021, changes to Pell grants and other student loan programs, and a requirement that both chambers of Congress vote on a joint resolution proposing a balanced-budget amendment to the Constitution.
While the momentum for the bipartisan deal continues to build, some House Democrats are still calling on President Obama to invoke a clause in the 14th Amendment of the Constitution that they say would allow the president to raise the debt ceiling unilaterally in the event Congress fails to do so. The White House and its legal team have steadfastly maintained that the president does not have this right.
On Monday evening, in a 269-161 vote, the House overcame challenges from the ideological wings of both parties to pass the compromise bill, which was primarily negotiated by Senate Minority Leader Mitch McConnell (R-Ky.) and Vice President Joe Biden.
The centrist coalition—led by House Speaker John Boehner (R-Ohio)—that ended up voting in favor of the bill overcame challenges from progressive Democrats furious about the potential for future cuts to entitlements, and the lack of any tax increases to reduce the deficit, and Republican congressmen who are worried about the cuts to defense spending.
Congresswoman Gabrielle Giffords (D-Ariz.), who was greeted with a standing ovation from her colleagues, appeared on the floor of the House for the first time since her shooting in Tucson, Ariz., back in early January. She voted for the bill.
A Senate vote on the bill is scheduled for Tuesday, Aug. 2. If passed, the legislation would allow the debt ceiling to be raised in time to avoid a potential situation in which the Treasury would not be able to pay all of its obligations.
The White House and congressional leaders from both sides gave public statements on Monday conceding that while the bipartisan bill was not perfect, it was a substantive compromise that needed to be passed in order to avoid the potentially catastrophic consequences that would result from a failure to raise the debt ceiling. Leaders from both sides praised the ability of the negotiators to come together to compromise at the eleventh hour.
“Now, this was a mess,” said White House Press Secretary Jay Carney, referring to the bipartisan deal, during Monday’s White House press briefing. “There is no question, it was a circus at times. We unnecessarily sent the message around the country and the globe that the United States might in fact default on its obligations for the first time in its history. But in the end, compromise won out, and an agreement that we believe strongly is in the interest of the American people was achieved.”
“This legislation is typical for compromise legislation,” said Senate Majority Leader Harry Reid (D-Nev.) during a Monday press conference. “Neither side got what they wanted, but it’s the essence of compromise.”
According to a report released by the bipartisan Congressional Budget Office (CBO), the Budget Control Act would trim at least $2.1 trillion from federal spending over the next decade, and includes a debt ceiling increase that would last until 2013, which had been a sticking point for Democrats.
Also according to the CBO report, the new bill contains an immediate spending cut of $917 billion, paired with a similarly sized debt limit increase. A special committee consisting of members of both parties and from both chambers of Congress would then be tasked with finding additional cuts of up to $1.5 trillion over the next decade. In the event the committee fails to come to an agreement, or if their recommendations do not satisfy the wider Congress, across-the-board spending cuts of $1.2 trillion would be automatically triggered.
In any case, the cumulative amount of spending cuts would amount to somewhere between $2.1 and $2.4 trillion, exceeding the planned debt-ceiling increase, which had been a sticking point for the deficit-hawk Republicans.
Other provisions in the Budget Control Act include the establishment of caps on discretionary spending through fiscal year 2021, changes to Pell grants and other student loan programs, and a requirement that both chambers of Congress vote on a joint resolution proposing a balanced-budget amendment to the Constitution.
While the momentum for the bipartisan deal continues to build, some House Democrats are still calling on President Obama to invoke a clause in the 14th Amendment of the Constitution that they say would allow the president to raise the debt ceiling unilaterally in the event Congress fails to do so. The White House and its legal team have steadfastly maintained that the president does not have this right.
