President Obama has signed into law the bipartisan measure to raise the federal debt ceiling in return for over $2.1 trillion in budget cuts. Obama held a signing ceremony shortly after the Senate gave its approval in a 74-to-26 vote, following House passage one day before. A new joint congressional committee will be mandated to oversee cuts of more than $2.1 trillion in government spending over 10 years, with automatic reductions in place should Congress reject the panel’s proposals. In a speech, Obama called for a “balanced approach” in slashing the deficit.

President Obama: “This compromise requires that both parties work together on a larger plan to cut the deficit, which is important for the long-term health of our economy. And since you can’t close the deficit with just spending cuts, we’ll need a balanced approach, where everything is on the table.”

The deal includes no new tax revenue from wealthy Americans and no additional stimulus for the lagging economy. Speaking on the Senate floor, Majority Leader Harry Reid criticized Republicans for blocking a tax hike on the wealthy.

Senate Majority Leader Harry Reid: “The vast majority of Democrats, Independents and Republicans think this arrangement we’ve just done is unfair, because the richest of the rich have contributed nothing to this. The burden of what has taken place is on the middle class and the poor. My friend talks about no new taxes. Mr. President, if their theory was right, these huge tax [cuts] that took place during the Bush eight years, the economy should be thriving. These tax cuts have not helped the economy.”