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US open for business after political drama

Red-faced Republicans forced to end shutdown

he US government reopened its doors today after Congress passed legislation to end a government shutdown and - just in the nick of time - avert a US debt default.

The deal left Republicans little to show for the political drama.

The Senate voted 81-18 to send the measure to the Republican-controlled House of Representatives, which passed it late on Wednesday night 285-144.

President Barack Obama signed the measure - which adhered strictly to the terms he laid down when the crisis erupted more than three weeks ago - shortly after midnight.

Congress had faced an 11.59pm deadline to raise the government's borrowing authority or risk a default.

The Bill reopens the government until January 15 and permits the Treasury to borrow normally to February 7.

It includes nothing for Republicans hoping to eradicate or scale back Mr Obama's signature healthcare plans.

"We fought the good fight. We just didn't win," claimed Republican House Speaker John Boehner.

Standard & Poor's estimated the shutdown had taken $24 billion (£15bn) out of the economy.

President Obama hailed the vote.

"We'll begin reopening government immediately and we can begin to lift this cloud of uncertainty from our businesses and the people," he said.

The president had vowed repeatedly not to pay a "ransom" in order to get Congress to pass routine legislation allowing government spending.

But the hard-right Tea Party faction had seen budget deadlines as weapons that could be used to gut the Affordable Care Act, designed to provide tens of millions of uninsured citizens with health coverage.

The Democrats remained united and Republicans could not muster enough votes to pass their own plan.

Over two million federal workers - both those who had remained on the job unpaid and those furloughed - will now be paid.

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