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Eleventh-hour deal averts default

Government shutdown also ends as bill heads to Obama's desk

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'We fought the good fight,' said Speaker of the House John Boehner.

EVAN VUCCI / THE ASSOCIATED PRESS Enlarge Image

'We fought the good fight,' said Speaker of the House John Boehner.

WASHINGTON -- Up against a deadline, Congress passed and sent a waiting U.S. President Barack Obama legislation late Wednesday night to avoid a threatened national default and end the 16-day partial government shutdown, the culmination of an epic political drama that placed the U.S. economy at risk.

The Senate voted first, a bipartisan 81-18 at midevening. That cleared the way for a final 285-144 vote in the Republican-controlled House about two hours later on the legislation, which hewed strictly to the terms Obama laid down when the twin crises erupted more than three weeks ago.

The legislation would permit the Treasury to borrow normally through Feb. 7 or perhaps a month longer, and fund the government through Jan. 15. More than two million federal workers would be paid -- those who had remained on the job and those who had been furloughed.

At the White House, Obama hailed the Senate's vote and encouraged the House to follow suit. Once the measure reaches his desk, he said, "I will sign it immediately. We'll begin reopening our government immediately and we can begin to lift this cloud of uncertainty from our businesses and the American people."

As debate began in the House, Rep. Harold Rogers, R-Ky., said, "After two long weeks, it is time to end this government shutdown. It's time to take the threat of default off the table. It's time to restore some sanity to this place."

The stock market surged higher at the prospect of an end to the crisis that also had threatened to shake confidence in the U.S. economy overseas.

Republicans conceded defeat after a long struggle. "We fought the good fight. We just didn't win," conceded House Speaker John Boehner as lawmakers lined up to vote on a bill that includes nothing for GOP lawmakers who had demanded to eradicate or scale back Obama's signature health-care overhaul.

"The compromise we reached will provide our economy with the stability it desperately needs," said Senate Majority Leader Harry Reid, declaring that the nation "came to the brink of disaster" before sealing an agreement.

Senate Republican Leader Mitch McConnell, who negotiated the deal with Reid, emphasized it preserved a round of spending cuts negotiated two years ago with Obama and Democrats. As a result, he said, "government spending has declined for two years in a row" for the first time since the Korean War. "And we're not going back on this agreement," he added.

Only a temporary truce, the measure set a time frame of early next winter for the next likely clash between Obama and the Republicans over spending and borrowing.

But for now, government was lurching back to life. In one example, officials met to discuss plans for gearing back up at the Department of Housing and Urban Development, where 307 employees remained at work during the partial shutdown and more than 8,000 were furloughed.

After weeks of gridlock, the measure had support from the White House, most if not all Democrats in Congress and many Republicans fearful of the economic impact of a default.

Boehner and the rest of the top GOP leadership told their rank and file they would vote for the measure, and there was little or no doubt it would pass both houses and reach the White House in time for Obama's signature before the 11:59 p.m. Oct. 17 deadline.

That was when Treasury Secretary Jacob Lew said the government would reach the current $16.7-trillion debt limit and could no longer borrow to meet its obligations.

Tea Party-aligned lawmakers who triggered the shutdown that began on Oct. 1 said they would vote against the legislation. Significantly, though, Texas Sen. Ted Cruz and others agreed not to use the Senate's cumbersome 18th-century rules to slow the bill's progress.

In remarks on the Senate floor, Cruz said the measure was "a terrible deal" and criticized fellow Republicans for lining up behind it.

McConnell made no mention of the polls showing the shutdown and flirtation with default have sent Republicans' public approval plummeting and have left the party badly split nationally as well as in his home state of Kentucky. He received a prompt reminder, though.

"When the stakes are highest, Mitch McConnell can always be counted on to sell out conservatives," said Matt Bevin, who is challenging the party leader from the right in a 2014 election primary.

The shutdown began on Oct. 1 after Cruz and his Tea Party allies in the House demanded the defunding of the health-care law as a trade for providing essential government funding.

 

-- The Associated Press

Republished from the Winnipeg Free Press print edition October 17, 2013 A9

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