August 2, 2011 - 13:30 AMT
U.S. House of Representatives passes debt-ceiling deal

The U.S. House on Monday passed the debt-ceiling deal worked out by President Barack Obama and congressional leaders, sending it to the Senate for consideration a day before the deadline for the government to face possible default.

A Senate vote was expected Tuesday, according to multiple Senate leadership aides from each party.

By a 269-161 vote, the House overcame opposition from liberal Democrats and tea party conservatives for ideologically different reasons.

One of those supporting the plan was Rep. Gabrielle Giffords, D-Arizona, who cast her first House vote since being shot in the head in an assassination attempt in January.

In an emotional moment, Giffords entered the chamber during the vote and received a prolonged standing ovation from her colleagues. House Minority Leader Nancy Pelosi hugged Giffords as other House members mobbed her, and the commotion diverted attention from the ongoing vote total showing the measure would pass.

The agreement reached Sunday by President Barack Obama and congressional leaders from both parties calls for up to $2.4 trillion in savings over the next decade, raises the debt ceiling through the end of 2012 and establishes a special congressional committee to recommend long-term fiscal reforms.

The legislation needs to reach Obama’s desk by Tuesday at the latest. If the current $14.3 trillion debt limit is not increased by that point, Americans could face rapidly rising interest rates, a falling dollar and shakier financial markets, among other problems.

A number of Republicans worried about cuts in defense spending and the lack of a required balanced-budget amendment to the Constitution. Progressive Democrats were livid over the extent of the deal’s domestic spending cuts, as well as the absence of any immediate tax hikes on wealthier Americans, according to CNN, Washington.