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THE US SENATE has passed a compromise two-year budget accord, marking a truce in the fiscal wars that have plagued Washington and reducing the likelihood of a government shutdown in January.
The measure, which passed 64-36 with the support of nine Republicans and the entire Democratic caucus, lays out top-line spending limits for 2014 and 2015, while erasing $63 billion (around €45 billion) in automatic spending cuts that were to kick in on 1 January.
It is expected to be signed by President Barack Obama before he heads to Hawaii on Friday for his Christmas break.
The legislation was one of the final major accomplishments for Congress in 2013, which by all accounts has been a miserable year for US lawmakers.
Following the expected approval of a massive defense spending bill later this week as well as several executive and judicial nominations, the Senate heads to recess until early January.
Budget experts from the Senate and House of Representatives have until 15 January to craft a series of spending bills under the new limit, or risk another shutdown like the one that paralysed Washington in October.
The bill increases the $967 billion cap for 2013 spending to $1.012 trillion next year and $1.014 trillion in 2015, and brings some normality to a process recently rocked by chaos.
Many Republicans including Senate Minority Leader Mitch McConnell voted against the deal, arguing it slightly increases spending, breaking the limits set in 2011 legislation.
But for others, there was a sense of relief that Congress managed to pass its first budget agreement in years.
“With passage of this compromise budget deal, we’ll replace $63 billion in non-strategic sequester cuts and prevent another government shutdown, restoring much-needed certainty to… our economy as a whole,” Senator Tim Kaine said shortly after passage.
“There is more work to be done to replace the remaining non-strategic sequestration cuts and address our long-term fiscal challenges, but Congress has now shown that we can work together in a bipartisan way, as the American public demands and deserves.”
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US GOV are world champs at kick the can.
That’s what capitalism is all about. The biggest ponzi scheme of them all. Immovable debt ceiling, eh? No such thing when you’re playing with monopoly money.
Republicans are some joke
Obama’s answer to the debt crisis? Get in even more debt. When is he rolling out these new obama cars?
Democrats are some joke
You’ll find it’s we , the people that are the joke I’m afraid .
That is what we should have done borrowed a trillion trillion and tell the financial institutions we have to wait for the Aliens to bail us out
But the Aliens are already here…..
Really looking forward to Jon Stewart now
Did it really have much of a choice.
have your say