Senate Passes, Obama Signs Debt Ceiling Increase Bill

After weeks of acrimonious Congressional fighting, the Senate in a 74-26 vote passed the debt ceiling emergency bill on Tuesday.

President Obama quickly signed the bill about an hour later into law before the country would have gone into default for the first time in its history.

The debt ceiling, now increased by $400 billion to the already existing $14.3 trillion, instantly gives the Treasury more borrowing power.

Obama, shortly after inking the new law, said, “This compromise requires that both parties work together on a larger plan to cut the deficit.”

That plan now includes the creation of a new Congressional uber (or Super) committee tasked with creating a plan to reduce spending by the government.

Bipartisan members for the panel will be chosen over the next two weeks, the Washington Post reports. 

One of the many concerns during the battle was the country's credit rating, now at AAA status.

Moody's Investor Service told reporters Tuesday night it wasn't going to lower the government’s credit rating at this time, according to the New York Times.

Now averting what could have been a financial crisis if the ceiling wasn't increased, the next major political battle will be when the special bi-partisan committee meets. There will be incentives for both parties to come up with a plan on how and where to cut $1.5 Trillion from the budget. If not, severe cuts will kick-in that to a number of programs that each party champions.

As a side note, Pennsylvania Sen. Patrick Toomey (R), voted against and, Senator Bob Casey (D) for, the new law.