Obama, lawmakers reach debt deal
President Obama and congressional leaders reached an agreement yesterday to raise the country's $14.3 trillion debt ceiling and cut spending by at least $2.4 trillion.
The agreement came just two days before the Aug. 2 deadline to avert a governmental default, according to The Associated Press. The first part of the deal raises the government's borrowing authority by $900 billion and includes $1.2 trillion in spending cuts over the next 10 years. A second stage creates a joint congressional committee to recommend another $1.5 trillion in deficit reductions by the end of November that would then be voted on by Congress before the end of the year. Exempt from spending cuts is Social Security, Medicaid and food stamps. The committee could also recommend raising the debt limit by another $1.5 trillion. Tax increases are not included in the plan unless recommended by the bipartisan committee.
Congress must still vote on the pact; the Senate is expected to support it, while gaining House approval could be more difficult, The AP reported. U.S. Sens. Susan Collins and Olympia Snowe both declined to comment on the agreement before reviewing it. U.S. Rep. Mike Michaud said he too must examine the agreement, and U.S. Rep. Chellie Pingree expressed concerns over its impact on "working families."
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