Senate passes bill to end debt showdown

Senate Minority Leader Mitch McConnell, R-Ky., and Senate Majority Leader Harry Reid, D-Nev.

/ CBS/AP

Updated: 2:49 p.m. ET

President Obama signed a bill to raise the nation's borrowing limit on Tuesday, just hours after the Senate voted 74-26 in favor of the deal that will cut government spending by trillions and effectively raise the debt ceiling through the end of 2012.

Nineteen Republican senators and six Democratic senators voted against the bill, as did one Independent senator who caucuses with Democrats. The bill was brokered Sunday night in last-minute negotiations between the White House and congressional leaders.

Senate Minority Leader Mitch McConnell, R-Ky., a key player in the negotiations, and Majority Leader Harry Reid,D-Nev., both backed the bill - paving the way for its easy passage in the Senate.

Obama signs debt limit bill after nasty fight
A summary of the debt ceiling compromise

The six Democrats who voted against the measure on Tuesday were sens. Kirsten Gillibrand (N.Y.), Tom Harkin (Ia.), Frank Lautenberg (N.J.), Bob Menendez (N.J.), Jeff Merkley (Ore.) and Ben Nelson (Neb.). Sen. Bernie Sanders, I-Vt., also voted against the measure.

The plan will cut nearly $1 trillion in government spending over the next 10 years and raise the amount of money the U.S. is legally allowed to borrow by enough to avoid another showdown on the matter before next year's presidential election.

It will also create a special congressional committee of a dozen members -- three from each party from the House and the Senate - that would be tasked with coming up with recommendations for $1.5 trillion in further deficit reductions by Thanksgiving. Those reductions could include cuts from defense and social safety net programs, as well as changes to the tax code. If the recommendations are not created or approved by Congress by the end of the year, there will be more than $1 trillion automatic spending cuts unless a balanced budget amendment to the Constitution is sent to the states.

CBSNews.com special report: America's debt battle

In remarks following the vote, President Obama called the deal a "first step" toward "ensuring that as a nation we live within our means," and reiterated his hope for a "balanced approach" in future negotiations.

"This compromise guarantees more than $2 trillion in deficit reduction. It's an important first step to ensuring that as a nation we live within our means," he said.

Mr. Obama added that the compromise "requires that both parties work together on a larger plan to cut the deficit, which is important for the long-term health of our economy. And since you can't close the deficit with just spending cuts, we will need a balanced approach, where everything is on the table."

"Everyone will have to chip in," he said. "That's only fair. That's the principle I will be fighting for during the next phase of this process."

The legislation was brought to a vote in the House Monday night after weeks of contentious negotiations and closed-door deal-making that fell apart on multiple occasions. Despite serious reservations among both Republicans and Democrats, the bill passed 269-191 with bipartisan support in the House.

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Both fiscally-conservative Republicans and liberal Democrats rejected the deal, with the former saying it does not go far enough to address the nation's debt and deficit crisis and the latter complaining it cut too much and did not include revenue increases. Though the deal will reduce the deficit by trillions of dollars, it still leaves the nation facing a projected $22 trillion debt ten years from now - an increase of more than $7 trillion from today. Ratings agencies have said that they could still downgrade the nation's Triple-A credit rating even with the deal.

In a press conference following the vote, Reid told reporters that while "neither side got what they wanted,"in the end, "the two sides came together."

"That's how our system works," he said. "That's what compromise is all about."

Still, Reid emphasized that the fight to include revenues in the package was far from over.

"We look forward to the work on the [congressional] committee to make sure that millionaires and billionaires and corporate jet owners and people who have that yachts who get tax benefits, oil companies who get these huge tax subsidies -- that that's in the mix of thinking what goes on," he said. "That's what this select committee is going to be about."

"I did not vote for this with a great deal of enthusiasm because the down payment on the deficit included in this bill comes primarily from working families and those who are struggling in America," added Sen. Dick Durbin, D-Ill., in the same press conference. "If we are going to have true deficit reduction and address this debt, we have to put everything on the table and bring everyone to the table for shared sacrifice."

In a statement following the vote, House Speaker John Boehner called the bill's passage "a positive step forward."

"This is a positive step forward that begins to rein in federal spending, but it's only a step," he said in the statement. "We should save the celebration for when a Balanced Budget Amendment is ratified, the deficit is fixed, and our economy has returned to creating jobs."

McConnell noted in remarks before the Senate vote that while the weeks-long, contentious back-and-forth over the issue may have been unpleasant, "it was a debate that Washington very much needed to have."

"The legislation that the Senate is about to vote on is just a first step - but it is a crucial step toward fiscal sanity," he said.

Now that Mr. Obama has signed the bill, the debate will shift to the question of which lawmakers will serve on the bipartisan "super committee" tasked with coming up with recommendations for $1.5 trillion for the second round of reductions.

9 Photos

Facts about the debt

[Truth_Tracker]

The Super Wealthy got everything they wanted, no questions asked, with the "TARP-Banks-Wall Street-Auto Industry" bailouts. The Super Wealthy got a humongous Welfare Check last December when the Bush Tax Breaks for the Super Wealthy was renewed. And NOW, we are told, they are getting everything they wanted yet again, namely, a complete exemption from having to share in the onerous burden of reducing the deficit, because there's no potential here for a roll-back of their Bush Tax Breaks (Welfare Benefits) for the wealthy.

The U.S. media refuses to even deem this to be significant, probably because THEY benefit tremendously from those "Welfare for the Wealthy" hand-outs and they surreptitiously silence the issue by shifting focus to the "Default Crisis" - with the curt remark "something for everyone to hate," and with the errant national anthem "pass anything - anything is better than default." Well there's nothing in this plan for the Super Wealthy to "hate." The super wealthy are the only ones being rigorously represented in Congress, in the White House or in the media.

[spike54321]

It's not a good deal for anyone, especially the American public. How is raising the debt by over a trillion a year a good thing? Or are you not satisfied with the 514 billion dollars we are paying on the debt INTEREST ALONE this year. or are you not satisfied with the dollars devaluation of some 40% since 2001, 20% this year alone, and thus reduction in purchasing power of the same amount. Their inability to control a budget has robbed Americans of 40 cents of every dollar they own. And you want more of the spending policies that cause this destruction? The government has spent 7.3 trillion just on paying the debt INTEREST in the past 20 years. What would our economy look like if it were 7.3 trillion richer?That hurts the poor and middle classes far more than the rich. No sir, it's not a good deal for anyone but the politicians maybe. You who deride the tea party border on insanity. How does reducing out of control spending not make sense. If you think that makes sense then I challenge you: Say you make 50 grand a year. I challenge you to go out and spend 70 grand a year ( That's 40% of a dollar, just like the government does ) Then tell me there are no negative consequences. The difference is that as an individual, it will only wipe YOU out financially. The government doing it wipes all of the poor and middle class out financially. You know not what you wish for or the consequences of what you wish for. It appears the free spending politicians want to wipe out America. I can only conclude that is their goal, heck, they couldn't even agree to cut 10 million from the national endowment of the arts last week. 100% of dems opposed along with about 40 repubs.


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[handsomeamerican]

You don't have the real "correct" choice on your poll...that no one won is leading, but the real answer is the rich folks who have convinced the Tea Party "regulars" that if they have to pay any taxes they won't be able to create any jobs...where are the jobs they are currently adding to the economy...they just hire more tax lawyers to find more loopholes...

[texcanread]

A banner across the bottom of the TV screen is sufficient to announce breaking news. We don't need to hear someone interpret what was just witnessed. If I want to hear the news I make a point to tune in at scheduled news times. Quit interrupting regular programming when a banner does the trick. It informs me, allows me to voice my thoughts and concerns at home to those who care to listen, but does not change my point of view or yours. However, it does disrupt my day.

[myopinionpal]

I wonder how many in congress will loose their seat because of this to the brink of default vote. Or will the voters once again forget about it at election time and continue to give the same career politicians their jobs back to once again take this country to the brink of the next crisis before acting.

[xobamafan]

They will forget. Some American Idol Bachelorette Fantasy Island tv show will distract them.

[insightig]

Let me get this straight... the House and Senate pass their jobs off to a Super Committee of 12 and then pack their bags and go home to sell the crap to the people... I DON'T NEED THEM TO COME HOME AND SALE ME MORE CRAP!! Stay in Washington and get this debt problem solved... that is what my tax dollars pay you to do... NOT IN SEPTEMBER... NOW!!! Get back to work tell it's done. I'm tired of bring brought down day in and day out because of missed deadlines with no answers.

[NotPartyControlled]

"Everyone will have to chip in" Bull! Will this include our elected "leaders" with their platinum benefits, perks, lobbyist contributions, discount airline, etc. They just never seem to have to give up anything, but their seat before they move on to lobbying positions. How about they get the same benefits as the average working American in the private sector. Some have never been in the private sector to experience it.

[reddboots]

Dang - we've been screwed over again.

[spike54321]

Nothing good will come of this. Last week they voted on an ammendment that would cut 10 million from the national endowment for the arts. It was voted down with 100% of dems voting against the cut and some 40 repubs voting against the cut. When the rubber meets the road they will do nothing. They needs to be run out of town ASAP or we are all toast.

[ship5]

forsanity1: You sound as hopelessly deluded as many of our elected stuffed shirts. I really wonder how you made it out of bed and to a keyboard.

[arthanyel]

How hard is it to believe? You made it to a keyboard.

[forsanity1]

Well, to people without facts and truth, I imagine I am a voice that can not be understood.

Sad.

Thanks art... pot and kettle and all...:)