“Nobody should assume we’re going to have a debt-limit extension,” John Boehner warned. “If the vote were held today, it would not pass.” Sound familiar? This was Boehner in November of 1995, when he was the House Republican Conference chairman and his party was refusing to raise the debt ceiling unless President Bill Clinton agreed to a package of sweeping spending cuts. The big difference is that back then, Republicans backed down, whereas today they’re on the verge of winning major policy concessions in exchange for a deal. How did President Bill Clinton head off this threat where Obama failed?

The story begins in October 1995, when, in exchange for raising the debt limit, Republicans demanded $245 billion in tax cuts, welfare overhaul, restraints on Medicare and Medicaid growth, and a balanced budget within seven years. The GOP’s plan, argued Boehner, was “the only one […] certified to eliminate the deficit and save our nation’s future from bankruptcy.” But from the very beginning, Clinton would have none of it. “If they send me a budget that says simply, ‘You take our cuts or we’ll let the country go into default,’ I will veto it,” Clinton said at the time, calling Republican tactics “economic blackmail.” Treasury Secretary Robert Rubin held the same firm line.

Republicans appeared to dig in their heels in early November, when the House passed a bill increasing the debt limit—but only through the next month—as well as a continuing resolution that included higher Medicare premiums and other spending cuts. Instead of attempting to negotiate over the cuts, Clinton simply vetoed both bills. “America has never liked pressure tactics, and I would be wrong to permit these kind of pressure tactics to dramatically change the course of American life,” Clinton said. “I cannot do it, and I will not do it.” The government shut down.

Although the budget standoff was resolved in early January, the debt limit issue remained. House majority leader Dick Armey went on “Meet the Press” to again demand spending cuts in return for a debt limit increase. In response, Rubin sent a sharp letter to Speaker Newt Gingrich, in which he warned that Congress only had until March 1 until the Treasury defaulted on its obligations. Reacting to the news, Moody’s rating agency announced that it was considering downgrading the rating on U.S. Treasury bonds. Republicans quickly folded, offering to raise the debt ceiling in return for some more modest provisions.

On March 28, 1996, Congress sent Clinton a bill raising the debt ceiling and enacting two popular Contract with America initiatives—easing the regulatory burden on small businesses and slightly altering the tax structure for Social Security recipients. Clinton signed the bill two days later, and with that, the debt limit fight was over.