The US government has avoided a federal default after a compromise plan to raise the federal government's debt ceiling passed Congress. President Obama was able to safeguard his health care reform as leading Republicans were forced to admit defeat. US President Barack Obama remained firm in the budget dispute with Republicans. With the threat of an impending federal default, a bipartisan compromise was approved by the the US Congress on Wednesday, October 17. Here, the president is shown during a ceremony two days prior.