Barack Obama signs debt ceiling legislation to end US government shutdown

Updated

President Barack Obama has signed into law legislation raising the Treasury Department's borrowing authority, officially ending the government shutdown that has crippled the country since October 1.

His signature came hours after the US House of Representatives passed the legislation, the result of a deal that reopens the federal government with a temporary budget until January 15 and extends US borrowing authority until February 7.

Earlier, the Senate passed the bill by 81 votes to 18.

The 11th-hour compromise came just hours before the point where the US Treasury simply would have been unable to borrow money to meet its debt obligations.

Speaking shortly after the bill passed the first hurdle in the Senate, Mr Obama said the government and Congress had a lot of work to do to regain the trust of the American public.

"We can begin to do that by addressing the real issues that they care about," he said.

"I've said it before, I'll say it again ... I am eager to work with anybody - Democrat or Republican, House or Senate members - on any idea that will grow our economy, create new jobs, strengthen the middle class and get our fiscal house in order for the long-term.

Analysis North America correspondent Michael Vincent:



No one was expecting [Obama] to speak until tomorrow.



Now he came out to the podium, he struck a very conciliatory tone. He praised the leaders in the Congress for making the deal.



He didn't mention any of them by name - he certainly didn't stick the boot into John Boehner and the Tea Party wing of the Republicans as he has done in the past few weeks.



He also gave a quick response when asked the question: 'Will this crisis reoccur in several months time?' He said no.



For a man who's just had a crushing victory, who's held out against extraordinary pressure from the Republicans, 16 days of a government shutdown and the threat of a US debt default, he certainly wasn't gloating.



He talked about the new-found bipartisanship, being able to make deals on a whole range of issues before Christmas, even including major immigration reform, which has been on the cards for a while now.



But for now he wants to get federal workers back on the job and avert this debt crisis, and he says hopefully such an occurrence won't happen again in the eleventh hour. No one was expecting [Obama] to speak until tomorrow.Now he came out to the podium, he struck a very conciliatory tone. He praised the leaders in the Congress for making the deal.He didn't mention any of them by name - he certainly didn't stick the boot into John Boehner and the Tea Party wing of the Republicans as he has done in the past few weeks.He also gave a quick response when asked the question: 'Will this crisis reoccur in several months time?' He said no.For a man who's just had a crushing victory, who's held out against extraordinary pressure from the Republicans, 16 days of a government shutdown and the threat of a US debt default, he certainly wasn't gloating.He talked about the new-found bipartisanship, being able to make deals on a whole range of issues before Christmas, even including major immigration reform, which has been on the cards for a while now.But for now he wants to get federal workers back on the job and avert this debt crisis, and he says hopefully such an occurrence won't happen again in the eleventh hour.

"My hope and expectation [is that] everybody has learned that there's no reason why we can't work on the issues at hand, why we can't disagree between the parties whilst still being agreeable."

The White House says there are no winners from the outcome, saying the American people paid a price.

The bill does not contain any significant concessions on Obamacare, which precipitated the shutdown.

However, it does include a mechanism that forces lawmakers into entering long-term budget negotiations, with recommendations due by December 13.

Senator John McCain said the deal marked the "end of an agonising odyssey" for Americans.

"It is one of the most shameful chapters I have seen in the years I've spent in the Senate," said Mr McCain, who had repeatedly warned Republicans not to link their demands for Obamacare changes to the debt limit or government spending bill.

International Monetary Fund chief Christine Lagarde called it an "important and necessary step" to allow budget negotiations continue.

"Looking forward, it will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner," she said.

"We also continue to encourage the US to approve a budget for 2014 and replace the sequester with gradually phased-in measures that would not harm the recovery, and to adopt a balanced and comprehensive medium-term fiscal plan."

Furloughed workers to receive backpay

The debt-ceiling deal also provides relief through backpay to workers furloughed in the government shutdown.

About 800,000 government employees were forced off the job when Congress could not agree on a budget for the new fiscal year.

In some departments, including the Environmental Protection Agency, 95 per cent of staff were deemed non-essential personnel and were effectively unemployed at the start of this month.

"Employees furloughed as a result of any lapse in appropriations which begins on or about October 1, 2013, shall be compensated at their standard rate of compensation, for the period of such lapse," according to the text of the deal provided by Senate majority leader Harry Reid's office.

Tea Party Republicans demanded changes to "Obamacare"

Republican Senators Ted Cruz and Rand Paul, two vocal opponents to the deal, said they would not attempt to delay it further.

"I have no objection to the timing of this vote," Mr Cruz told reporters.

But that didn't stop Mr Cruz firing another shot at the Senate.

"The House of Representatives has taken a bold stance listening to the American people," he said.

"But unfortunately, the United States Senate has refused to do likewise. The United States Senate has stayed with the traditional approach of the Washington establishment of maintaining the status quo and doing nothing to respond to the suffering that Obamacare is causing millions of Americans.

House conservatives backed by the Tea Party movement have thus far thwarted votes on the debt ceiling and on passing a budget, demanding concessions from Mr Obama.

Democrats have refused to allow Republicans to hold those issues to "ransom" with attempts to slash spending or dismantle the president's landmark health insurance reform.

But the Senate deal includes a mechanism that forces lawmakers into entering long-term budget negotiations, with recommendations due by December 13.

Topics: government-and-politics, world-politics, business-economics-and-finance, united-states

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