Debt Ceiling Agreement Passes House
8/2/11: Last night the House passed legislation, 269-161, implementing the bipartisan agreement reached last night by the administration and Congress to avoid a government default and reduce the federal deficit. The measure now goes to the Senate.
The package extends the debt ceiling through 2012 while calling for about $2.4 trillion in deficit reduction over ten years. Under the agreement, the President would be able to raise the debt ceiling in two increments to avert a government default. Deficit reduction cuts of approximately $2.4 trillion over ten years are also required. While the first trillion would not alter federal pensions as originally proposed, there will likely be serious cuts to agency budgets. Afterwards a “super committee,” established in Congress, would have to report and have enacted an additional $1.5 trillion in deficit reduction, or automatic cuts would occur.
While this package averts a government default, NTEU will continue its fight, especially with the “super committee” to preserve federal health and pensions, and to maintain agency funding so that federal employees can continue serving the public.