16 February 2014

POTUS Signs Debt Limit Measure, Restores Benefits to Younger Retirees | RallyPoint.com


By DARLENE SUPERVILLE
Copyright 2014 Associated Press

RANCHO MIRAGE, Calif. — President Barack Obama on Saturday signed separate measures into law to lift the federal debt limit and restore benefits that had been cut for younger military retirees.

Obama signed the bills during a weekend golf vacation in Southern California.

The debt limit measure allows the government to borrow money to pay its bills, such as Social Security benefits and federal salaries. Failure to pass the measure, which the Senate passed 67-31 earlier this week and sent to Obama for his signature, most likely would have sent the stock market into a nosedive.

The Treasury Department is now free to borrow regularly through March 15, 2015, meaning lawmakers won't have to revisit the issue until a new Congress is sworn in after the November elections.

Separate legislation passed in December would have held annual cost-of-living increases for veterans age 62 and younger to 1 percentage point below the rate of inflation, beginning in 2015. The measure was designed to hold the line on the soaring cost of government benefit programs, which have largely escaped trillions of dollars in deficit cuts over the past three years.

The cuts were enacted less than two months ago, with a projected savings to the government of $7 billion over a decade. Veterans groups and some lawmakers said the cut was a mistake, and they began campaigning to have the benefits restored.

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