The Free Press, Mankato, MN

State, national news

October 16, 2013

Deal reached to avoid default and open government

Dow Jones soars 200 on news

WASHINGTON (AP) — Senate leaders announced last-minute agreement Wednesday to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown. Congress raced to pass the measure by day's end.

The Dow Jones industrial average soared on the news that the threat of default was fading, flirting with a 200-point gain in morning trading.

"This is a time for reconciliation," said Senate Majority Leader Harry Reid of the agreement he had forged with the GOP leader, Sen. Mitch McConnell of Kentucky.

McConnell said that with the accord, Republicans had sealed a deal to have spending in one area of the budget decline for two years in a row, adding, "we're not going back."

One prominent tea party lawmaker, Sen. Ted Cruz of Texas, said he would oppose the plan, but not seek to delay its passage.

That was a key concession that signaled a strong possibility that both houses could act by day's end. That, in turn, would allow President Barack Obama to sign the bill into law ahead of the Thursday deadline that Treasury Secretary Jacob Lew had set for action to raise the $16.7 trillion debt limit.

Officials said the proposal called for the Treasury to have authority to continue borrowing through Feb. 7, and the government would reopen through Jan. 15.

There was no official comment from the White House, although congressional officials said administration aides had been kept fully informed of the negotiations.

In political terms, the final agreement was almost entirely along lines Obama had set when the impasse began last month. Tea party conservatives had initially demanded the defunding of the health care law as the price for providing essential federal funding.

Under a strategy set by Obama and Reid, Democrats said they would not negotiate with Republicans in exchange for performing what the White House called basic functions of keeping the government in operation and preventing Treasury from defaulting on its obligations.

Text Only | Photo Reprints
State, national news
  • Allina drops celebrated birthing option MINNEAPOLIS (AP) — Allina Health has pulled the drain plug on a celebrated birthing option at its 11 Minnesota hospitals and the Mother Baby Center in Minneapolis. Allina says it will no longer offer water births because of new guidance from the Ame

    April 24, 2014

  • Federal study finds mercury in trout caught in three Grand Canyon creeks PHOENIX — With their natural beauty and protected environments, the Grand Canyon and other national parks in the West would seem removed from having mercury in their streams and rivers. But a federal study found small levels of the contaminant in ra

    April 24, 2014

  • Post office sales fight grows SAN FRANCISCO — The Advisory Council on Historic Preservation has issued a report to Congress that criticizes the U.S. Postal Service’s disposal of historic properties and calls for a suspension of all sales until a host of recommendations are implem

    April 24, 2014

  • Lawmakers jockey over budget surpluses WASHINGTON — Less than 24 hours after the University of Kentucky men’s basketball team beat cross-state rival Louisville to advance to the Sweet 16, Lexington Mayor Jim Gray asked state lawmakers for $80 million to renovate Rupp Arena, the iconic bui

    April 23, 2014

  • Minn. lawmakers seek to enhance privacy protection ST. PAUL, Minn. (AP) — Minnesota lawmakers are on the verge of cracking down on public employees who abuse their access to citizen data. A measure being negotiated in a House-Senate conference committee would do more to expose and punish data snoope

    April 23, 2014

  • Republican activists push party on gay marriage LAS VEGAS (AP) — As bans against gay marriage crumble and public opinion on the issue shifts rapidly, some Republicans are pushing the party to drop its opposition to same-sex unions, part of a broader campaign to get the GOP to appeal to younger vot

    April 23, 2014

  • mfp church abuse Archbishop deposition on abuse made public Archbishop John Nienstedt says no one reprimanded who handled abuse

    April 22, 2014 1 Photo

  • Legislature takes aim at new lottery games Legislators angry lottery didn't tell of new games

    April 22, 2014

  • NE ski resort extends season Lutsen still has two to four feet of snow on its runs

    April 22, 2014

  • Mpls police looking for pit bull, owner Man injured, dog killed when attacked in park

    April 22, 2014