President Barack Obama on Sunday night announced that Congress had arrived at an 11th-hour bipartisan deal to raise the nation’s debt ceiling and prevent an unprecedented United States default on its financial obligations.
The deal, which Mr. Obama said was not the one he’d sought but which nonetheless required both Republicans and Democrats to make painful compromises, increases the U.S. debt limit by at least $2.1 trillion through 2013.
The plan also includes a trillion dollars in spending cuts, and creates a congressional commission to come up with another $1.5 trillion in cuts by November 23, largely through tax and entitlement reform.
If that November deadline is not met, Mr Obama said, automatic cuts go into effect. Those include $1.2 trillion cuts to domestic and defense programs, but reportedly would not include cuts to Social Security, Medicare beneficiaries and programs for low-income Americans.
Obama Announces Congress Has Reached Debt Ceiling Agreement