Obama Signs Credit Limit Increase, Government Shutdown Ends

Finally after 16 days of political deadlock and partial government shutdown, Congress reaches a compromise and passes a bill to increase the credit limit. The funding signed by President Barack Obama is based on an agreement that would finance the government up to January 15, 2014 with an extension of credit limit until February 7, 2014. For now, the government has reopened and furloughed workers are going back to work a day after the end of the shutdown.

Congress roll call

The U.S. Congress was on a 285-144 roll call when it passed the budget bill and shortly forwarding it to Obama for signature to beat the October 17 deadline. Democrats gave 198 yes votes while 87 Republicans voted yes. No Democrat voted “no” as against the144 Republicans’ “no” votes. The just ended political drama has placed the U.S. in a shaky financial situation with threat of default that would potentially affect the entire world. Now people can heave a sigh of relief, at least until early next year.

Normal borrowing

The signed budget will allow the Treasury to borrow in its normal way until February 7 with possible one month extension while government funding will continue until January 15. This means that over 2 million workers under federal government funding, both the furloughed workers and those who stayed on the job, will be able to receive their salaries.

No more default

The U.S. Capitol was beset with political conflict when Republicans refused to sign the budget allocation. However, as soon as the budget measure was approved by the House, Obama immediately signed the vote Thursday early morning. The President said that this signals that the Government is back to business and uncertainty has been cleared from the business sector and the American people. Meanwhile the stock market started to go up as soon as talks of ending the shutdown surfaced, putting confidence back in place. House Speaker John Boehner said that the fight was a good one. He added that the GOP became helpless in their effort to take out Obama’s health care program. Senate Majority Leader Harry Reid on the other hand declared that after a budget compromise was reached, the country has risen and was snatched from the brink of disaster.

Temporary deal

In the midst of rejoicing over the resumption of government operation, the agreement is only a temporary deal. For now, confidence is back but the clash between Obama and Republicans on over-spending and borrowing remains vital in the background. After Obama signed the bill that would raise the credit ceiling, the Government is back on sail after more than two weeks of deadlock, at least over the early winter.

Back pay for furloughed workers

As the shutdown ended before the Thursday deadline, furloughed workers were summoned back to work. The disrupted lives of these workers will now return to normal condition as they are expected to resume work as soon as possible. Back pays will be given to these federal workers as part of the signed deal in Congress. Some 800,000 federal employees had to stay home during the 16-day shutdown period, causing many families to suffer under an unpredictable condition.