Obama signs legislation to avert default

August 2, 2011 - 1:14 PM
APTOPIX Obama Debt Showdown

President Barack Obama delivers a statement in the Rose Garden of the White House in Washington, Tuesday, Aug. 2, 2011, following the Senate's passing of the debt ceiling agreement. (AP Photo/Susan Walsh)

WASHINGTON (AP) — President Barack Obama has signed legislation to increase the nation's borrowing authority and avert a potentially catastrophic government default.

Obama signed the bill privately in the Oval Office little more than an hour after the Senate voted final passage. It capped months of contentious and partisan debate. The compromise bill paired an increase in the debt ceiling with promises of more than $2 trillion of budget cuts over the next decade.