Congress approves debt ceiling deal (Updated)

The U.S. House of Representatives voted Monday night (Aug.1) on a debt ceiling agreement that was supported by Arkansas’ three Republican Congressman and the state’s lone Democratic rep.

That vote was followed Tuesday with a 74-26 vote for the bill in the U.S. Senate. U.S. Sens. John Boozman, R-Ark., and Mark Pryor, D-Ark., voted for the bill that would extend the debt ceiling by $2.4 trillion.

Senate Bill 365 was approved in the House by a 269 to 161 margin, with U.S. Reps. Rick Crawford (Republican, Arkansas First District), Tim Griffin (Republican, Arkansas Second District), Steve Womack (Republican, Arkansas Third District), and Mike Ross (Democrat, Arkansas Fourth District) voting for the bill. (See the bottom of this post for a video of Rep. Womack explaining his vote.)

The bill outlines measures to cut government spending more than the $2.4 trillion debt limit increase, mandates spending caps on future budgets, and lays the groundwork for a future vote on a balanced budget amendment to the U.S. Constitution.

U.S. House Speaker John Boehner, R-Ohio, pushed this PDF presentation of what the vote will require.

In an ironic twist, Ross, Arkansas’ lone Democratic Congressman, has been one of the most vocal advocates for a federal balanced budget amendment.

An amendment to the U.S. Constitution proposed in Congress requires a two-thirds majority vote in both the House and Senate and must then be ratified by three-fourths of the states, or 38 states, or by a ratifying convention.

“If Congress does nothing but simply raise the debt limit, we are ignoring the fundamental problem that spending is out of control and that we are once again kicking the can down the road until we hit the debt limit again,” Ross said in a July 18 statement.

Debate surrounding the debt ceiling has created a tense political dynamic heading into a presidential election cycle.

Standard & Poor’s, one of the major credit rating agencies that analyzes America’s credit standing in the world economy, said the country is at risk of a downgrade to its AAA credit rating. Many economists believe that a credit downgrade could negatively impact world financial markets and force the U.S. to pay even more in interest rates – a key contributor to the debt crisis. Conversely, analysts have also said that continued increases to the debt ceiling and higher government spending could also negatively impact U.S. financial standing.

Following are comments from Arkansas’ Senators on the debt ceiling deal.
U.S. Sen. John Boozman, R-Ark.
“From the onset of this debate, we have been working to prevent a default which requires a solution greater than merely raising the debt ceiling. Americans understand that we need to get our fiscal house in order. They have demanded that we show we are serious about reining in the reckless spending before giving us the green light to raise the debt ceiling.”
 
“This bill, while far from perfect, is certainly a step in the right direction.  It saves our nation from defaulting on our obligations while combining real spending cuts with a mandatory vote on a Balanced Budget Amendment.  It cuts deficit spending without raising taxes.  It gives us some direction toward a long-term solution to our financial problems.  We have to do what is in the best interest of Arkansas and America, and this realistic approach should do that.”

U.S. Sen. Mark Pryor, D-Ark.
“The debate over raising the debt ceiling has been difficult but essential to reduce the deficit, avoid default, and provide more certainty in our economy. We started with harmful, partisan plans and advanced to an agreement on a bipartisan, practical solution. While not perfect, I plan to vote for this bill. It makes a nearly $1 trillion in spending cuts and sets the stage for long-term savings. It does so without dismantling safety net programs such as Social Security and Medicare, which would have been unacceptable to hundreds of thousands of Arkansans. Though it is a step in the right direction, we must continue making tough decisions to reduce our debt. Arkansans have shared with me how truly frustrated they are about the gridlock in Washington, DC.  I agree. We need to work better together in order to put Americans back to work and earn back their trust.”

Following are comments from Arkansas’ Congressmen on the House vote.
U.S. Rep. Rick Crawford
“Make no mistake, this one bill does not ‘fix’ the deficit or debt problem that took decades to create, but it’s a start. If this were the only step, I would vote no. But it isn’t:  It is the beginning of a long, hard battle that will require many tough choices. This bill is not perfect, but it is good and is consistent with my principles of no tax increases, spending cuts now, spending cuts in the future, caps on spending, entitlement reform and a vote on a Balanced Budget Amendment. If the current debt agreement would have failed, it would have been replaced by a deal that depended more on Nancy Pelosi’s Democrat votes and would have been a worse deal for sure. The current deal is not a great deal, but it is the best resolution divided government is going to get us. It cuts with no tax hikes. And that’s progress.”

U.S. Rep. Tim Griffin
“Tonight I voted for fiscally responsible legislation that ensures America pays its debt and does not increase the burden on our country’s job creators. The Budget Control Act will cut government spending by more than the debt ceiling is raised, does not raise taxes, caps reckless spending, and advances the Balanced Budget Amendment through Congress. While this legislation is not perfect, the seeds of the solution to Washington’s problem are planted in this bill – the Balanced Budget Amendment. This bill is a fundamental step in the right direction, implements structural changes to the way Washington does business, and allows America to live up to its greatness.”

U.S. Rep. Mike Ross
“At last, cooler heads prevailed and we were able to pass a bipartisan agreement that secures America’s financial standing in the world, forces tough decisions to reduce our national debt and makes meaningful spending cuts that protect seniors’ Social Security and Medicare benefits. While this bill is a step in the right direction, we still have a lot of work to do to get this nation’s fiscal house back in order. As a fiscal conservative, I will continue to be a moderating voice in this debate, bringing everyone to the table as we find commonsense ideas that help us return to the days of a balanced budget and a stronger economy.”

U.S. Rep. Steve Womack
“When you consider the fact that we control the House — not the Senate and White House — one would have to conclude that this deal is a win for conservatives. It gets better than “dollar for dollar” cuts, no tax increases, and gives us a pathway toward a balanced budget amendment to the Constitution. I congratulate Speaker Boehner and his leadership team in its negotiating prowess in insisting on cuts-only solutions to the debt issues plaguing our nation. The longest journey begins with that all-important first step, and the solution approved today in both chambers is a major step toward fiscal sanity in our country.”