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Obama signs debt deal bill
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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.

The administration had said the government could not pay all its bills without the new borrowing authority, and it warned that default would severely damage the global economy and push the U.S. back into recession or worse. Even with the legislation now in place, there are fears that the last-minute sparring could shake rating agencies' confidence and harm the country's Triple-A credit rating.

Though the compromise deal passed, it deeply angered both conservative Republicans and liberal Democrats. Many Republicans contended the bill still would cut too little from federal spending; many Democrats said much too much.

A deeply frustrated Obama, while praising Congress for finally passing the compromise bill, demanded legislators immediately turn their attention to fixing the economy and creating jobs.

"We've got to do everything in our power to grow this economy and put America back to work," he said, shortly after the Senate voted 74-26 to pass the measure.

He also said he was not giving up on his insistence that Congress allow taxes to be raised on big corporations, through an end to loopholes, and the richest Americans once both houses return from their summer recess in early September. The measure that now becomes law relies wholly on cutting spending as a tool for lowering the American deficit.

"We can't balance the budget on the backs of the people who've borne the brunt of this recession," the president said.

Polls showed Americans largely supported Obama's contention that taxes need to be raised for those earning incomes above $250,000, while revoking loopholes that benefit hugely profitable oil companies and operators of hedge funds. Nevertheless, the extended and bitter fight over raising the debt ceiling, a routine matter for in past Congresses, damaged the standing of Obama and lawmakers.

A new CNN/ORC International poll found that just 14 percent of those questioned approved of the way Congress is handling its job. Obama approval rating stood at 45 percent.

He deeply alienated many members of his liberal base as he took increasingly centrist positions, apparently banking on picking up support from independent, middle-of-the-road voters.

After weeks of some of the nastiest political battles in recent U.S. history, both the Senate and House easily adopted the plan. In tandem, legislators approved more than $2 trillion of budget cuts over the upcoming decade.

Because the deal prescribes significant cuts to U.S. federal spending, it was widely expected to buoy global investors and diminish chances of Treasury bonds undergoing a credit downgrade. That would increase the cost of borrowing both for the government and consumers.

But as the measure cleared its last legislative hurdle, world markets were down, the U.S. Dow Jones Industrials off for an eighth straight day.

"Neither side got all it wanted, each side laments what it didn't get," Democratic Majority Leader Sen. Harry Reid said.

"Today we made sure America can pay its bills. Now it's time to make sure all Americans can pay theirs," said Reid, foreshadowing Democrats plans to shift their attention to creating jobs. U.S. unemployment remains above 9 percent.

Investors were unnerved by spreading debt troubles in Europe and a decline in U.S. consumer spending to the lowest level in two years. The bad news signaled a further slowing of the fragile U.S. economic recovery and snuffed out optimism over the hard-fought vote in Congress.

Polls showed that Congress and Obama have taken a sharp hit in U.S. public opinion because of the prolonged battle over lifting the debt ceiling, something that past Congresses have done as a matter of course.

Without legislation in place by the end of Tuesday, the Treasury would run out of cash needed to pay investors in Treasury bonds, recipients of Social Security pension checks, anyone relying on military veterans' benefits and businesses that do work for the government.

Treasury Secretary Timothy Geithner told ABC News Monday that he doesn't know if the bruising debt-limit battle will harm America's Triple-A credit rating, but says he fears "world confidence was damaged by this spectacle."

Geithner told ABC that credit rating is "not my judgment to make." But he also says "this is, in some ways, a judgment on the capacity of Congress to act."

Local farm partnership brings fresh beef to Warren County Schools
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Warren County Schools has beefed up lunch menus this school year through a new community partnership. Thanks to a collaboration between the district’s School Nutrition Department and Barton Creek Farms, students at Warren County High School, Warren County Middle School, West Elementary, Eastside Elementary, and Dibrell Elementary are enjoying locally sourced, farm-fresh beef in their lunches as part of a pilot program.

The initiative, spearheaded by Terri Mullican, Director of School Nutrition, has already shown great promise in its first few months. The partnership with Barton Creek Farms, located in Rock Island, Tennessee, ensures that the beef served is not only local to Warren County but of the highest quality. Barton Creek Farms specializes in farm-to-fork beef, with grass-fed and grain-finished cattle. Each calf is born and raised in Rock Island and goes through USDA-inspected processing, ensuring it meets the strictest safety and quality standards.

“When the opportunity arose to provide fresh, local beef, we knew it was a no-brainer,” Mullican said. “The fact that it’s a product from right here in our community makes it even more special. We can’t wait to implement it district-wide.”

Barton Creek Farms delivers fresh ground beef to the district monthly, and the nutrition

department incorporates it into homemade recipes such as lasagna, meatloaf, chili, and tacos.

As of now, the beef is being served at five schools, but the ultimate goal is to expand the program to all ten lunch-serving schools in the district.

The pilot program originated from a conversation between Mary Roller of Barton Creek Farms and Mullican. Roller, recognizing the farm’s potential to support local schools, reached out to gauge the district’s interest in serving local beef to students. Around the same time, a Warren County school board member contacted Mullican to share information about a similar partnership in neighboring Dekalb County, which helped push the initiative forward.

The timing worked in the district’s favor, as the nutrition department was able to fund the purchase of the beef using existing resources, eliminating the need for additional funding. Now that the pilot program is enjoying a successful run, the department has budgeted to extend the partnership district-wide for the 2025-26 school year.

Dr. Grant Swallows, Director of Schools, praised the program’s economic approach to student nutrition.

“This pilot is a perfect example of how we can use local resources to continue providing nutritious, healthy meals for our students,” he said. “We are grateful for partnerships like this one that benefit both our students and our local community. We always strive to support our local businesses when we can because our community is so good to us.”

In addition to working with Warren County Schools, Barton Creek Farms also partners with local restaurants to offer farm-fresh beef on their menus. The farm’s offerings include ground beef, steaks, roasts, and custom cuts by the quarter, half, or whole cow, meeting diverse consumer needs.

As the program continues to grow, the district hopes to expand its focus on farm-to-school meals, benefiting students’ health and connecting them to the agricultural roots of the community