Congress raises debt ceiling to $12.4 trillion

WASHINGTON (AP) - The Senate voted Thursday to raise the ceiling on the government debt to $12.4 trillion, a massive increase over the current limit and a political problem that President Barack Obama has promised to address next year.

The Senate's rare Christmas Eve vote, 60-39, follows House passage last week and raises the debt ceiling by $290 billion. The vote split mainly down party lines, with Democrats voting to raise the limit and Republicans voting against doing so. There was one defection on each side, by senators whose seats will be on the ballot next year: GOP Sen. George Voinovich of Ohio and Democratic Sen. Evan Bayh of Indiana.

"I would not support raising the debt ceiling because Congress has not adopted a credible process to restrain spending and eliminate red ink," Bayh said a statement after the vote.

The bill permits the Treasury Department to issue enough bonds to fund the government's operations and programs until mid-February. The Senate will vote again on the issue Jan. 20.

Obama must sign the measure into law to prevent a market-rattling, first-ever default on U.S. obligations. The government piled up a record $1.4 trillion deficit in 2009 to counter a meltdown in financial markets and help bring the nation out of its worst recession in seven decades.

The early-morning vote followed the Senate's passage of a landmark bill to overhaul the nation's health care system. They were the Senate's last votes of the year.

With the exception of Voinovich, Republicans uniformly derided the bill, though they routinely supplied votes for eight previous increases totaling $5.4 trillion under President George W. Bush.

Voinovich, who is retiring, said he voted "yes" after Majority Leader Harry Reid agreed to consider amendments when the Senate takes up the matter again next month. Bayh told the Senate Budget Committee in November that he would oppose an increase in the limit unless Congress commits to a strict new debt-fighting plan.

Democrats had originally planned to pass an unprecedented increase of almost $2 trillion to avoid another vote before next year's midterm elections.

But that plan fell apart amid opposition from about a dozen Senate Democratic moderates, who refuse to support a debt limit increase unless it is accompanied by legislation to establish a new bipartisan task force to come up with a plan to curb the deficit. That idea is opposed by House Speaker Nancy Pelosi, D-Calif., and other Democratic leaders.

Pelosi, meanwhile, is supporting demands of moderate House Democrats, who are demanding a "pay-as-you-go" budget law aimed at ensuring that new tax cuts or new spending programs don't increase deficits in exchange for their votes for the next debt increase.

The Senate is generally opposed to the idea, even though it was the law of the land for more than a decade.

Battles over those issues and others, such as a vote on a GOP proposal to end the Wall Street bailout program, are expected to resume during January's debate.

Except for Voinovich, Republicans—who helped supply votes to increase the debt ceiling twice last year and provided 27 votes for an $850 billion increase two years ago—opposed the legislation. It is required to issue new debt to pay for federal operations and deposit up to $50 billion into the Social Security trust funds to pay pensions.

Thursday's debt limit measure and the larger version looming in January require a supermajority of 60 votes to pass. Democrats control the chamber with 60 votes, which could require all 60 members of the Democratic caucus to vote for it, including several members who are politically endangered.

The current measure is needed as a result of the out-of-control budget deficit, which registered $1.4 trillion for the budget year that ended in September. The current debt ceiling is $12.1 trillion and is set to be reached by Dec. 31.

Views: 57

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted a blog post

The De-intellectualizing of the West!

 One of the saddest aspects of reducing a society into chaos and division is propaganda, which is…See More
11 hours ago
cheeki kea commented on cheeki kea's photo
18 hours ago
cheeki kea posted a photo
18 hours ago
tjdavis posted a video

The file of shame - Zandvoort - one of the largest covered-up paedophile scandals

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
Tuesday
Doc Vega posted a blog post

Alaskan Triangle US Air Force Loses 5 Aircraft

 The year is 1950 and the US and Soviet Union are locked in a crucial arms race that epitomizes the…See More
Monday
Doc Vega posted a blog post

Is this an Undeclared War We are Technologically Losing?

 Incident No. 1The year is 1980 and in US Air Force records this incident is still classified so…See More
Friday
tjdavis favorited Sandy's photo
Friday
Sandy posted a photo
Friday
tjdavis favorited cheeki kea's video
Sep 23
Mr.Jensen commented on cheeki kea's video
Thumbnail

THE PAPER CHAINS

"Well from now on this fight is up to Amerian People to win it. I'm afraid that all wars you…"
Sep 23
Mr.Jensen updated their profile
Sep 23
Doc Vega posted a blog post

Top German Panzer Ace of WWII Meets His End Finally

On the battlefields of the eastern and western fronts there was a scourge for the Germans who had…See More
Sep 22
tjdavis posted a photo
Sep 22
Doc Vega posted a blog post

Big Lonely: An Indie Film that Will seriously Affect You

It's easy for us to be caught up in our little world, feeling sorry for ourselves, or lamenting the…See More
Sep 21
Doc Vega posted blog posts
Sep 20
rlionhearted_3 favorited Doc Vega's blog post Don’t you Just Enjoy having Your Intelligence Insulted?
Sep 19
rlionhearted_3 favorited Doc Vega's blog post Don’t you Just Enjoy having Your Intelligence Insulted?
Sep 19
rlionhearted_3 favorited Doc Vega's blog post Don’t you Just Enjoy having Your Intelligence Insulted?
Sep 19
tjdavis posted a photo
Sep 17
tjdavis posted videos
Sep 17

© 2026   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted