Obama signs 2-year budget and debt deal on eve of US default deadline

WASHINGTON – President Barack Obama has signed into law a bipartisan budget bill that avoids national default and sets federal spending through the 2017 fiscal year.

Obama says the deal puts the government “on a responsible path.”

Tuesday was the deadline by which the U.S. would have defaulted on its financial obligations without an agreement.

The legislation raises the limit on the government’s debt until March 2017, pushing reconsideration of the issue until after next year’s presidential and congressional elections.

It sets the federal budget through the 2016 and 2017 fiscal years and eases strict spending caps by providing an additional $80 billion, split between military and domestic programs.

Negotiations over the budget wrapped up quickly last week as Republican Rep. Paul Ryan of Wisconsin prepared to become the new House speaker.