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| House passes short-term debt ceiling extension but spending cuts still loom | House passes short-term debt ceiling extension but spending cuts still loom |
| (about 1 month later) | |
| The House of Representatives voted on Wednesday to extend the US's borrowing limit for more than three months as the majority of Republicans backed down from their demands for more spending cuts. | The House of Representatives voted on Wednesday to extend the US's borrowing limit for more than three months as the majority of Republicans backed down from their demands for more spending cuts. |
| The Republican-sponsored bill still needs a Senate vote and presidential approval but is likely to receive both. Democrats said they would approve the bill without changes shortly before the vote, which passed 285-144 with 86 Democrats voting for the bill to make up for the 33 Republicans who objected. | The Republican-sponsored bill still needs a Senate vote and presidential approval but is likely to receive both. Democrats said they would approve the bill without changes shortly before the vote, which passed 285-144 with 86 Democrats voting for the bill to make up for the 33 Republicans who objected. |
| John Boehner, Republican House speaker, included a provision in the bill that will halt Washington lawmakers' wages if a budget plan is not passed by April 15. "It's real simple: no budget, no pay," said Boehner. | John Boehner, Republican House speaker, included a provision in the bill that will halt Washington lawmakers' wages if a budget plan is not passed by April 15. "It's real simple: no budget, no pay," said Boehner. |
| Jay Carney, White House spokesman, called the vote a "welcome development" but said the president would prefer a longer term solution. | Jay Carney, White House spokesman, called the vote a "welcome development" but said the president would prefer a longer term solution. |
| The compromise avoids an impending budget crisis that Treasury secretary Timothy Geithner warned would do "irreparable" harm to the US economy. Earlier this month Geithner wrote to Congress warning that the US was close to exhausting the measures put in place to extend its borrowing capacity. The government hit its $16.4tn limit on 31 December 2012. "It must be understood that the nation's creditworthiness is not a bargaining chip or a hostage that can be taken to advance any political agenda," warned Geithner. | The compromise avoids an impending budget crisis that Treasury secretary Timothy Geithner warned would do "irreparable" harm to the US economy. Earlier this month Geithner wrote to Congress warning that the US was close to exhausting the measures put in place to extend its borrowing capacity. The government hit its $16.4tn limit on 31 December 2012. "It must be understood that the nation's creditworthiness is not a bargaining chip or a hostage that can be taken to advance any political agenda," warned Geithner. |
| While the vote addresses immediate concerns, the vote to push off debt ceiling decisions until 18 May will not halt upcoming spending cuts or impending clashes over government spending. On 1 March, $110bn in automatic spending cuts are set to take effect. And on 27 March, a stop-gap measure financing government operations expires. | While the vote addresses immediate concerns, the vote to push off debt ceiling decisions until 18 May will not halt upcoming spending cuts or impending clashes over government spending. On 1 March, $110bn in automatic spending cuts are set to take effect. And on 27 March, a stop-gap measure financing government operations expires. |
| Republican conservatives are preparing for a fresh battle a the end of March. House members including former vice-presidential hopeful Michelle Bachmann who voted against the bill voiced their concerns after the decision. "Giving the president four months of unlimited borrowing authority without a cap on spending is something I cannot support," said Bachmann. | Republican conservatives are preparing for a fresh battle a the end of March. House members including former vice-presidential hopeful Michelle Bachmann who voted against the bill voiced their concerns after the decision. "Giving the president four months of unlimited borrowing authority without a cap on spending is something I cannot support," said Bachmann. |
| "I could not vote for a bill that added $4tn to our national debt over the next 10 years," said Republican congressman Jimmy Duncan of Tennessee. | "I could not vote for a bill that added $4tn to our national debt over the next 10 years," said Republican congressman Jimmy Duncan of Tennessee. |
| Senator Rand Paul, seen as a potential presidential candidate, sharply criticised his Republican colleagues in a speech in South Carolina earlier this week saying they had "retreated" in the face of opposition. | Senator Rand Paul, seen as a potential presidential candidate, sharply criticised his Republican colleagues in a speech in South Carolina earlier this week saying they had "retreated" in the face of opposition. |
| "I saw the speaker on TV handing the newly sworn-in president a flag. I am afraid it was the white flag of surrender," he told the audience, Politico reported. | "I saw the speaker on TV handing the newly sworn-in president a flag. I am afraid it was the white flag of surrender," he told the audience, Politico reported. |
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