Obama signs bill averting government default

U.S. President Barack Obama
Pete Souza/The White House/Getty Images/File

WASHINGTON President Barack Obama has signed into law a bill raising the federal government's borrowing limit, averting a default and delaying the next clash over the U.S. debt until later this year.

The legislation temporarily suspends the $16.4 trillion limit on federal borrowing. Experts say that will allow the government to borrow about $450 billion to meet interest payments and other obligations.

The Senate gave the bill final approval last week and sent it to Obama, who signed it Monday.vDemocrats and Obama had warned that failure to pass the bill could set off financial panic and threaten the economic recovery.

The bill includes a provision attached by Republicans in the House of Representatives that temporarily withholds lawmakers' pay in either chamber that fails to produce a budget plan.