U.S. Debt Ceiling Raised to $12.4 Trillion

(AP)  Updated 11 a.m. ET

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.

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 America's health care system. They were the Senate's last votes of the year.

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 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 Republican proposal to end the Wall Street bailout program, are expected to resume during January's debate.

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.

[CBSisCommunist2]

tax and spend baby tax and spend

[bumpedoff1]

obama the joke

[stormerF2]

I say! when we reach the limit start taking away the Politican's Pensions.Why are we paying them pensions when they get sent to prison for lying,cheating and stealing from the Tax Payers? That is for sure, a law that needs to be changed.

[travelers345]

Work hard, pay your bills and buy American, America. The alternative will not be good.

[underdogus2009]

Let's party like it's 1929!!

[crikeytx46]

The politicians have been !!

[ianlou]

That' $41,333 for every American including babies, retires, illegals, prisoners and millionairs.

[kbbpll]

Funny, I just did the math on that myself. My household share is only $165000. I guess we bought a pretend house. But since 40% of households pay no federal taxes, my share is really $275000. That's a much nicer pretend house.

[sean56v]

America has $12 trillion in red ink and Obama celebrates a victory by corrupt physicians. The public should vote out this Congress. It is filled with bribery, scandal, and lies. They have turned appropriations committees into wheels of fortune for every shady interest.

[mcapek]

Corrupt physicians? I think you meant to say politicians..

[jackp32]

.......................and the sell out of America continues by corrupt politicians.

[nbenn514]

two questions - when are we going to quit blaming bush for the spending made by this president in 2009 and how in the world are we ever going to pay off this debt?

[partagus7]

meboard, I fail to see how pointing out the flaws of GWB somehow justifies what Obama is doing now. Throwing blame does not correct our finacial situation.

[payasyougo]

"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."
-----

Actually, the government turned a four state housing bubble into a national recession. Over a year and what do we have:

- All the parties involved in the bubble have profited w/ the cost to taxpayers.
- Not one piece of legislation preventing another. In fact, the same players are now benefiting w/ a 8k and 6.5k tax subsidy.

You Democrats just keep blaming Republicans for past deeds. You Republicans just keep blaming Democrats for current deeds.

Meanwhile, while you are pointed at each other, you are losing your country.

Republicans spent the last two election cycles voting out those that spent like Liberals. Now the liberals are in full control. Will the Democrats do the same or are they just as self serving?