Senate passes bill to prevent US default STEVEN R. HURST,Associated Press WASHINGTON (AP) — The U.S. avoided a feared and catastrophic default on the American debt, as lawmakers on Tuesday passed a measure that ties an agreement to raise the government's capacity to borrow to steep cuts in government spending. The Senate passed the measure Tuesday, a day after it passed the House of Representatives, and President Barack Obama quickly signed it into law. The emergency bill increases the nation's $14.3 trillion cap on borrowing, thus avoiding default just hours before the midnight deadline, and begins the process of curbing the country's spiraling debt.