CQ TODAY ONLINE NEWS
July 17, 2011 – 3:59 p.m.
House Sets Symbolic Vote on Debt Limit; Senators Continue With Backup Plan
By Joseph J. Schatz, CQ Staff
The debt ceiling debate will move to the House and Senate floors this week, even as congressional leaders and administration officials continue quiet negotiations aimed at avoiding an economic and political crisis.
With the Treasury Department warning that the government will default unless Congress raises the debt ceiling by Aug. 2, Republicans remain at loggerheads with President Obama over any comprehensive deficit reduction package. A week of White House talks had produced no bipartisan deal by Sunday afternoon, making it increasingly likely that Senate leaders will move ahead with a backup plan that began to emerge last week.
It appeared more evident over the weekend that senior members of neither party want to see the debt limit dispute become a showdown with unpredictable political and economic consequences.
“The country will not default. Whether or not there are savings achieved in the process remains open to question,” Senate Minority Whip
But before they accept what may inevitably be a disappointment to the GOP’s conservative base, Republican leaders want to allow conservative lawmakers to take a strong and public — if largely symbolic — stand against government spending.
On Tuesday, the House will vote on the right’s favored plan for raising the $14.3 trillion debt ceiling: an austerity proposal — called “cut, cap and balance” — aimed at making historic cuts in the size of the government and trading a debt limit increase for congressional support of a constitutional amendment that would make tax increases extremely difficult to enact.
Senate Minority Leader
While the House may pass the bill, neither proposal stands a chance in the Senate. “It does not have the votes in the Senate,” Majority Whip
House Bill’s Provisions
The House legislation (
Speaker
The McConnell plan emerged as White House deficit reduction talks stalled last week. It would effectively allow the president to raise the debt limit in successive steps, and would not, at least as it was originally offered, make actual spending cuts demanded by more junior House Republicans. That has resulted in opposition from the likes of Republican Sen.
But the plan has the backing of most GOP elders, who worry that a default would politically cripple the Republican Party. Senate Majority Leader
House Sets Symbolic Vote on Debt Limit; Senators Continue With Backup Plan
Senators have discussed creating a joint House-Senate committee that would recommend long-term deficit reduction measures. Such a panel’s recommendations would be guaranteed up-or-down votes on the House and Senate floors. When exactly those recommendations would be due — this year or next — remained under discussion over the weekend.
The Senate leaders are also discussing adding to their proposal more than $1 trillion in spending cuts, including major curbs on discretionary spending. That step, however, might wait until the bill moves to the House, where Republicans will likely be eager to make their own imprint on the plan.
Boehner said he is open to the plan as a last resort, but is allowing the party’s most adamant spending hawks to have their say Tuesday.
Democratic Votes Needed
The Speaker huddled privately with Minority Leader
“We are keeping the lines of communication open with all parties,” said Boehner spokesman Michael Steel. “Meetings have been occurring, ideas are being exchanged and scenarios are being discussed.”
But he suggested it could pass the House with Democratic votes. “Who knows if there’s a combination of Republicans and Democrats who will support it?” Jordan said on “Fox News Sunday.”
Action After Repercussions
Pelosi has warned that many Republicans may not vote to increase the debt ceiling until a default occurs and those lawmakers see the reaction of the financial markets. That is effectively what happened in 2008, when the House rejected President George W. Bush’s financial industry bailout package, prompting a steep stock market drop. Days later, the House accepted a version of the plan modified by the Senate (PL 10-343).
Leaders are likely to factor in time for the House to work its will on an eventual compromise. And that means the Senate will be under increasing pressure to start floor debate on a McConnell-Reid plan early this week.
Paul M. Krawzak contributed to this story.