Senate ends year by raising debt ceiling to $12.4 trillion

December 25, 2009|Laurie Kellman, Associated Press

WASHINGTON - The Senate voted yesterday to raise the ceiling on the government debt to $12.4 trillion, a massive increase over the current limit and a political problem that President Obama has promised to address next year.

The Senate’s rare Christmas Eve vote, 60 to 39, follows House passage last week and raises the debt ceiling by $290 billion. The vote split mainly down party lines, with Democrats voting to raise the limit and Republicans voting against doing so. There was one defection on each side, by senators whose seats will be on the ballot next year: Republican George Voinovich of Ohio and Democrat Evan Bayh of Indiana.

“I would not support raising the debt ceiling because Congress has not adopted a credible process to restrain spending and eliminate red ink,’’ Bayh said a statement after the vote.

The bill permits the Treasury Department to issue enough bonds to fund the government’s operations and programs until mid-February. The Senate will vote again on the issue Jan. 20.

Obama must sign the measure into law to prevent a market-rattling, first default on US obligations. The government piled up a record $1.4 trillion deficit in 2009 to counter a meltdown in financial markets and help bring the nation out of its worst recession in seven decades.

The early-morning vote followed the Senate’s passage of a landmark bill to overhaul the nation’s health care system - the Senate’s last two votes of the year.

With the exception of Voinovich, Republicans derided the bill, though they routinely supplied votes for eight previous hikes totaling $5.4 trillion under President George W. Bush.

Voinovich, who is retiring, said he voted yes after majority leader Harry Reid agreed to consider amendments when the Senate takes up the matter again next month.