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Senate leaders strike deal to raise debt ceiling and end government shutdown Senate leaders strike deal to raise debt ceiling and end government shutdown
(about 2 hours later)
Republican leaders conceded defeat in their two-week battle to derail Barack Obama's healthcare reforms on Wednesday, agreeing to a series of votes that were likely to re-open the government and avert a looming debt default. Republican leaders conceded defeat in their two-week battle to derail Barack Obama's healthcare reforms on Wednesday, bringing the US back from the brink of a looming debt default and signalling the end of a two-week government shutdown.
With just hours until a deadline set by the US Treasury for extending the debt limit, House speaker John Boehner signalled he was ready to accept a Senate-drafted peace deal that contained almost no concessions to conservatives who had driven the country the brink of a new financial crisis. With just hours until a deadline set by the US Treasury for extending the debt limit, House speaker John Boehner signalled he was ready to accept a Senate-drafted peace deal that contained almost no concessions to conservatives who had driven the country the precipice of a new financial crisis.
Harry Reid, the Senate majority leader, announced the deal on the the floor of the Senate just after midday. He called for all sides to work together to implement the deal. "Now is not the time for pointing fingers," he said. Harry Reid, the majority leader, announced the deal on the the floor of the Senate just after midday. He called for all sides to work together to implement the plan. "Now is not the time for pointing the fingers of blame. Now is the time for reconciliation," he said.
Mitch McConnell, the Republican minority leader, acknowledged the fight was over and said the shutdown and debt crisis should be over later on Wednesday. Mitch McConnell, the Republican minority leader, acknowledged the fight was over and said the shutdown and debt crisis should be over later on Wednesday. "This has been a long, challenging few weeks," McConnell said. "This is far less than many of us had hoped for, but it is far better than some had sought."
"This has been a long, challenging few weeks," McConnell said. "This is far less than many of us had hoped for, but it is far better than some had sought."
The deal crafted by Reid and McConnell will fund the government until 15 January and lift the debt ceiling until 7 February. It will force both sides into a formal budget conference to try to reach a longer-term deal by 13 December.The deal crafted by Reid and McConnell will fund the government until 15 January and lift the debt ceiling until 7 February. It will force both sides into a formal budget conference to try to reach a longer-term deal by 13 December.
The only apparent change to the Affordable Care Act, which Republicans had targeted in their budget standoff, involves asking the Obama administration to carry out better checks on the incomes of those applying to take part in new insurance exchanges.The only apparent change to the Affordable Care Act, which Republicans had targeted in their budget standoff, involves asking the Obama administration to carry out better checks on the incomes of those applying to take part in new insurance exchanges.
A senior Republican aide told the Guardian that Boehner had agreed to allow the House to vote on the deal, which in practice means it would pass with support from Democrats and moderate Republicans, although it was still unclear when this would happen. A senior Republican aide told the Guardian that Boehner had agreed to allow the House to vote on the deal, which in practice means it would pass with support from Democrats and moderate Republicans. House aides said it was likely the vote would take place late on Wednesday evening.
The White House welcomed the Senate deal but cautioned that the battle would not be finally over until House lawmakers voted in favour of it. "The president applauds leader Reid and minority leader McConnell for working together to forge this compromise and encourages the Congress to act swiftly to end this shutdown and protect the full faith and credit of the United States of America," said Obama's chief spokesman, Jay Carney.
The White House also hinted that Obama may use the defeat of conservatives in Congress as a way to push ahead with other administration priorities such as immigration reform, that were previously blocked from coming to the floor of the House of Representatives.
"The president believes that one of the consequences of these manufactured crises is that time is taken away from the pursuit of other goals that we have as a nation," added Carney. "That includes... the project of bringing about legislation that he can sign that comprehensively reforms our immigration system."
Republican recriminations
Recriminations among Republicans flew thick and fast, with moderates accusing House conservatives of trashing the party's reputation in pursuit of an impossible ambition to repeal Obamacare entirely.Recriminations among Republicans flew thick and fast, with moderates accusing House conservatives of trashing the party's reputation in pursuit of an impossible ambition to repeal Obamacare entirely.
Senator Lindsey Graham, of South Carolina, said this had "been the best two weeks for the Democratic party in recent times".Senator Lindsey Graham, of South Carolina, said this had "been the best two weeks for the Democratic party in recent times".
"When we evaluate the last couple of weeks, it should be entitled the time of great lost opportunity. If we had been focused on the rollout of Obamacare and its confusion, public support would have diminished. Instead, our numbers have gone down, Obamacare has mysteriously gone up, and other than that, this has been great.""When we evaluate the last couple of weeks, it should be entitled the time of great lost opportunity. If we had been focused on the rollout of Obamacare and its confusion, public support would have diminished. Instead, our numbers have gone down, Obamacare has mysteriously gone up, and other than that, this has been great."
He was scathing about the influence of conservative advocacy groups such as Heritage Action, which torpedoed a deal on Tuesday when it threatened to withdraw support from Republicans who backed it, but blamed lawmakers for listening to them. Graham was scathing about the influence of conservative advocacy groups such as Heritage Action, which torpedoed a deal on Tuesday when it threatened to withdraw support from Republicans who backed it. He also warned of the damage that the party had inflicted on itself: The way we are behaving and the path we have taken the last couple of weeks leads to a marginalised party in the eyes of the American people," he said.
"Every member of Congress gets hit by groups like this right and left. I am not mad at a group for wanting their way; I am focusing on trying to get the Republican party to chart a better way. The way we are behaving and the path we have taken the last couple of weeks leads to a marginalised party in the eyes of the American people. A form of conservatism that is probably beyond what the market would bear. " Ted Cruz, the first-term Republican senator from Texas who had led the rebellion against Obamacare with a marathon 21-hour speech last month, was unrepentant but said he would not stand in the way of the Senate vote even though he opposes the deal.
If, as expected, the House votes on the new deal first, it would prevent Cruz from delaying its passage through the Senate and could herald an end to the crisis by Wednesday night. Underscoring the divisions in the Republican party, he blamed fellow senators for failing to go along with his strategy. "Unfortunately the Senate chose not to follow the House and in particular we saw real division among Senate Republicans. Had Senate Republicans united and supported House Republicans the outcome of this would have been very, very different," Cruz said.
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