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Congress votes to end government shutdown, avoid U.S. default

REUTERS - Members of the U.S. House of Representatives depart after a late-night vote on fiscal legislation to end the government shutdown, at the U.S. Capitol in Washington, Oct. 16, 2013. The U.S. Congress on Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity.
<div style='float:right;width:100%;' align='right'><em>REUTERS</em></div>Members of the U.S. House of Representatives depart after a late-night vote on fiscal legislation to end the government shutdown, at the U.S. Capitol in Washington, Oct. 16, 2013. The U.S. Congress on Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity.
REUTERS - Members of the U.S. House of Representatives depart after a late-night vote on fiscal legislation to end the government shutdown, at the U.S. Capitol in Washington, Oct. 16, 2013. The U.S. Congress on Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity.
<div style='float:right;width:100%;' align='right'><em>REUTERS</em></div>Members of the U.S. House of Representatives depart after a late-night vote on fiscal legislation to end the government shutdown, at the U.S. Capitol in Washington, Oct. 16, 2013. The U.S. Congress on Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity.
REUTERS - U.S. House Speaker John Boehner walks to the House floor for a vote on fiscal legislation to end the government shudown, at the U.S. Capitol in Washington, Oct. 16, 2013. The U.S. Congress on Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity.
<div style='float:right;width:100%;' align='right'><em>REUTERS</em></div>U.S. House Speaker John Boehner walks to the House floor for a vote on fiscal legislation to end the government shudown, at the U.S. Capitol in Washington, Oct. 16, 2013. The U.S. Congress on Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity.
AP - Senate Majority Leader Harry Reid, D-Nev., and Democratic leaders speak with reporters after voting on a measure to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown, at the Capitol in Washington, Wednesday, Oct. 16, 2013, as Sen. Chuck Schumer, D-N.Y., Senate Majority Leader Harry Reid, D-Nev., Sen. Patty Murray, D-Wash., chair of the Senate Budget Committee, and Senate Majority Whip Dick Durbin, D-Ill., listen.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>Senate Majority Leader Harry Reid, D-Nev., and Democratic leaders speak with reporters after voting on a measure to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown, at the Capitol in Washington, Wednesday, Oct. 16, 2013, as Sen. Chuck Schumer, D-N.Y., Senate Majority Leader Harry Reid, D-Nev., Sen. Patty Murray, D-Wash., chair of the Senate Budget Committee, and Senate Majority Whip Dick Durbin, D-Ill., listen.
AP - This image from Senate Television shows the final vote total Wednesday night, Oct. 16, 2013, after the Senate voted to avoid a financial default and reopen the government after a 16-day partial shutdown and the measure now heads to the House, which is expected to back the bill before day's end.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>This image from Senate Television shows the final vote total Wednesday night, Oct. 16, 2013, after the Senate voted to avoid a financial default and reopen the government after a 16-day partial shutdown and the measure now heads to the House, which is expected to back the bill before day's end.
REUTERS - U.S. Senator Ted Cruz (R-TX) (C) and Senator Mike Lee (R-UT) (R) depart the Senate floor after their speeches before the night-time budget vote at the U.S. Capitol in Washington, October 16, 2013. The U.S. Senate, racing to avert a government default, on Wednesday passed legislation raising the Treasury Department's borrowing authority and sent the measure to the House of Representatives for final passage.
<div style='float:right;width:100%;' align='right'><em>REUTERS</em></div>U.S. Senator Ted Cruz (R-TX) (C) and Senator Mike Lee (R-UT) (R) depart the Senate floor after their speeches before the night-time budget vote at the U.S. Capitol in Washington, October 16, 2013. The U.S. Senate, racing to avert a government default, on Wednesday passed legislation raising the Treasury Department's borrowing authority and sent the measure to the House of Representatives for final passage.
AP - Speaker of the House Rep. John Boehner, R-Ohio, pumps his fist as he walks past reporters after a meeting with House Republicans on Capitol Hill on Wednesday, Oct. 16, 2013 in Washington. The partial government shutdown is in its third week and less than two days before the Treasury Department says it will be unable to borrow and will rely on a cash cushion to pay the country's bills.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>Speaker of the House Rep. John Boehner, R-Ohio, pumps his fist as he walks past reporters after a meeting with House Republicans on Capitol Hill on Wednesday, Oct. 16, 2013 in Washington. The partial government shutdown is in its third week and less than two days before the Treasury Department says it will be unable to borrow and will rely on a cash cushion to pay the country's bills.
AP - President Barack Obama makes a statement to reporters in the Brady Press Briefing Room at the White House in Washington, Wednesday, Oct. 16, 2013. The Senate voted to avoid a financial default and reopen the government after a 16-day partial shutdown and the measure now heads to the House, which is expected to back the bill before day's end.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>President Barack Obama makes a statement to reporters in the Brady Press Briefing Room at the White House in Washington, Wednesday, Oct. 16, 2013. The Senate voted to avoid a financial default and reopen the government after a 16-day partial shutdown and the measure now heads to the House, which is expected to back the bill before day's end.
AP - Sen. Ted Cruz, R-Texas, speaks to reporters waiting outside a closed-door meeting of Senate Republicans as news emerged that leaders reached a last-minute agreement to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown, at the Capitol in Washington, Wednesday, Oct. 16, 2013. Cruz said he would not try to block the agreement.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>Sen. Ted Cruz, R-Texas, speaks to reporters waiting outside a closed-door meeting of Senate Republicans as news emerged that leaders reached a last-minute agreement to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown, at the Capitol in Washington, Wednesday, Oct. 16, 2013. Cruz said he would not try to block the agreement.
AP - Senate Majority Leader Sen. Harry Reid, D-Nev., walks to his office after arriving on Capitol Hill on Wednesday, Oct. 16, 2013 in Washington.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>Senate Majority Leader Sen. Harry Reid, D-Nev., walks to his office after arriving on Capitol Hill on Wednesday, Oct. 16, 2013 in Washington.
AP - Sen. John McCain, R-Ariz., walks to a meeting with Senate Minority Leader Sen. Mitch McConnell, R-Ky., on Capitol Hill on Wednesday, Oct. 16, 2013 in Washington.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>Sen. John McCain, R-Ariz., walks to a meeting with Senate Minority Leader Sen. Mitch McConnell, R-Ky., on Capitol Hill on Wednesday, Oct. 16, 2013 in Washington.
AP - Reporters wait outside the office of Speaker of the House John Boehner, R-Ohio, as a planned vote in the House of Representatives collapsed, Tuesday night, Oct. 15, 2013, at the Capitol in Washington.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>Reporters wait outside the office of Speaker of the House John Boehner, R-Ohio, as a planned vote in the House of Representatives collapsed, Tuesday night, Oct. 15, 2013, at the Capitol in Washington.
AP - National Park Service Director Jonathan Jarvis waits to testify before a joint hearing with the House Natural Resources Committee and the House Oversight and Government Reform Committee to look at the closure of national parks because of the government shutdown during a hearing on Capitol Hill in Washington, Wednesday, Oct. 16, 2013.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>National Park Service Director Jonathan Jarvis waits to testify before a joint hearing with the House Natural Resources Committee and the House Oversight and Government Reform Committee to look at the closure of national parks because of the government shutdown during a hearing on Capitol Hill in Washington, Wednesday, Oct. 16, 2013.
AP - Senate Minority Leader Mitch McConnell, R-Ky., arrives at the Capitol in Washington, Wednesday, Oct. 16, 2013. Aides to Senate Democrat Majority Leader Harry Reid and Republican Minority Leader Mitch McConnell said the leaders resumed talks Tuesday night and voiced optimism about striking an agreement Wednesday that could pass both houses of Congress and reach President Barack Obama's desk before Thursday, when the U.S. Treasury says it will begin running out of cash.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>Senate Minority Leader Mitch McConnell, R-Ky., arrives at the Capitol in Washington, Wednesday, Oct. 16, 2013.  Aides to Senate Democrat Majority Leader Harry Reid and Republican Minority Leader Mitch McConnell said the leaders resumed talks Tuesday night and voiced optimism about striking an agreement Wednesday that could pass both houses of Congress and reach President Barack Obama's desk before Thursday, when the U.S. Treasury says it will begin running out of cash.
AFP/Getty Images - The US Congress building is seen behind a parking meter in Washington, DC, October 14, 2013.
<div style='float:right;width:100%;' align='right'><em>AFP/Getty Images</em></div>The US Congress building is seen behind a parking meter in Washington, DC, October 14, 2013.
AP - Rep. Louie Gohmert, R-Texas., listens during a joint hearing with the House Natural Resources Committee and the House Oversight and Government Reform Committee on Capitol Hill in Washington, Wednesday, Oct. 16, 2013. The hearing was looking at who was to blame for the closure of national parks because of the current government shutdown.
<div style='float:right;width:100%;' align='right'><em>AP</em></div>Rep. Louie Gohmert, R-Texas., listens during a joint hearing with the House Natural Resources Committee and the House Oversight and Government Reform Committee on Capitol Hill in Washington, Wednesday, Oct. 16, 2013. The hearing was looking at who was to blame for the closure of national parks because of the current government shutdown.

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By The Associated Press
Wednesday, Oct. 16, 2013, 8:39 a.m.
 

WASHINGTON — Up against a deadline, Congress passed and sent a waiting 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 bill, 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 2 million federal workers would be paid - those who had remained on the job and those who had been furloughed.

After the Senate approved the measure, Obama hailed the vote and quickly signed the bill early Thursday.

“We'll begin reopening our government immediately, and we can begin to lift this cloud of uncertainty from our businesses and the American people,” the president said.

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 demand 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 that 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 this winter for the next likely clash between Obama and the Republicans over spending and borrowing.

But for now, government was lurching back to life. Within moments of the House's vote, Sylvia Mathews Burwell, director of the Office of Management and Budget, issued a statement saying “employees should expect to return to work in the morning.”

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 in advance they would vote for the measure. In the end, Republicans split 144 against and 87 in favor. All 198 voting Democrats were supporters.

Final passage came in plenty of time to assure Obama's signature before the administration's 11:59 p.m. Thursday 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 that 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.

More broadly, national tea party groups and their allies underscored the internal divide. The Club for Growth urged lawmakers to vote against the congressional measure, and said it would factor in the organization's decision when it decides which candidates to support in midterm elections next year.

“There are no significant changes to Obamacare, nothing on the other major entitlements that are racked with trillions in unfunded liabilities, and no meaningful spending cuts either. If this bill passes, Congress will kick the can down the road, yet again,” the group said.

Even so, support for Boehner appeared solid inside his fractious rank and file. “There are no plots, plans or rumblings that I know of. And I was part of one in January, so I'd probably be on the whip list for that,” said Rep. Thomas Massie of Kentucky.

The U.S. Chamber of Commerce came out in favor of the bill.

Simplicity at the end, there was next to nothing in the agreement beyond authorization for the Treasury to resume borrowing and funding for the government to reopen.

House and Senate negotiators are to meet this fall to see if progress is possible on a broad deficit-reduction compromise of the type that has proved elusive in the current era of divided government.

Additionally, Health and Human Services Secretary Kathleen Sebelius is to be required to produce a report stating that her agency is capable of verifying the incomes of individuals who apply for federal subsidies under the health care law known as Obamacare.

Obama had insisted repeatedly he would not pay “ransom” by yielding to Republican demands for significant changes to the health care overhaul in exchange for funding the government and permitting Treasury the borrowing latitude to pay the nation's bills.

Other issues fell by the wayside in a final deal, including a Republican proposal for the suspension of a medical device tax in Obamacare and a Democratic call to delay a fee on companies for everyone who receives health coverage under an employer-sponsored plan.

The gradual withering of Republicans' Obamacare-related demands defined the arc of the struggle that has occupied virtually all of Congress' time for the past three weeks.

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.

Obama and Reid refused, then refused again and again as Boehner gradually scaled back Republican demands.

The shutdown initially idled about 800,000 workers, but that soon fell to about 350,000 after Congress agreed to let furloughed Pentagon employees return to work. While there was widespread inconvenience, the mail was delivered, Medicare continued to pay doctors who treated seniors and there was no interruption in Social Security benefits.

Still, national parks were closed to the detriment of tourists and local businesses, government research scientists were sent home and Food and Drug Administration inspectors worked only sporadically.

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