A last-minute compromise on the debt ceiling bill was signed on Tuesday afternoon by President Barack Obama, helping the nation to avoid a major economic catastrophe. The bill plans to raise the nation’s current $14.3 trillion debt ceiling in order to offset a default. U.S.
Senate passed the plan with a 74-26 vote, which calls for a major overhaul on spending within the next decade. The plan also introduces an expected $2.4 trillion in savings, a raise on the debt ceiling through the end of 2012, and calls for the establishment of a special congressional committee to deal with long-term fiscal reform in regards to the government’s national debt.
The House of Representatives approved the vote on Monday night with a 269-161 vote. Arizona State Representative Gabrielle Giffords, who survived a shot to the head, made an appearance for the first time in seven months to cast her vote.
Following Senate’s vote on the bill, Obama praised the deal, stating that the legislation was “an important first step for ensuring that as a nation we don’t live beyond our means.”
He also echoed sentiment about the importance of the nation’s political leaders working together.
“Voters may have chosen divided government, but they sure didn’t vote for dysfunctional government,” the president said.
If the bill had not been passed, the financial market would have been drastically affected. The nation could possibly face a credit rating downgrade in regards to all the hub-bub around the debt issue.