Photo: AP Photo/Charles Dharapak
8:32pm | POLITICO is reporting that Senate Minority Leader Mitch McConnell and Vice President Jode Biden remain in conversation to try to push both Democrats and Republicans toward a compromise. [link]
7:48pm | Sen. Mike Lee (R-UT), who was backed by the tea-party, says he would oppose Boehner/Reid plans on CNN. He wouldn’t specify what procedural tools he may/may not use to block them in the Senate. At this stage a filibuster would all but guarantee that any plan won’t pass before August 2nd.
7:37pm | Rep. Paul Ryan on CNBC’s The Kudlow Report claims Reid bill is “full of gimmicks” from war savings. Doesn’t note that without the war savings that the Reid and Boehner plans are nearly identical. (Reid’s plan actually would cut more according to the CBO.)
5:58pm | Speaker of the House John Boehner has released his revised plan to raise the debt limit. Boehner says the Congressional Budget Office scored his bill to include $917 billion in cuts — more than the $900 billion debt limit increase he is now including.
5:40pm | In a statement Congressional Black Caucus Democrats call for “No Cuts, No Cap, Just Raise” the debt ceiling.
“Let us remove every partisan reason to fight,” the statement reads. “Every rational American understands the need to pay our national debt. It is reckless to play Russian Roulette with our economy and with the solvency of our great nation. Democratic Members of the Congressional Black Caucus support a clean bill to raise the debt ceiling.”
4:31pm | POLITICO’s Jon Allen is reporting former Senate Majority Leader Trent Lott says that, based on congressional procedure, a deal can’t be done to raise the debt limit until Weds. or Thurs. next week.
4:15pm | The Congressional Black Caucus is a “no” vote on the REID plan, according to a spokeswoman. Rep. Emanuel Cleaver was heard saying the CBC is a no vote on any bill that does not raise the debt limit in a “clean” vote in a radio interview earlier today — that is they will vote against any bill including spending cuts.
3:47pm | Default is off.
2:11pm | Here is Carney .
1:33pm | Sen. John McCain criticised tea party Republicans for “foolish” demands in the debt limit debate, ABC News reports.
“To hold out and say we won’t agree to raising the debt limit until we pass a Balanced Budget Amendment to the constitution. It’s unfair, it’s bizarre,” McCain railed on the Senate floor, “And maybe some people have only been in this body for six or seven months or so really believe that. Others know better.” Read more here:
1:10pm | In a statement to CNBC, the Treasury Department disputes reports that August 2nd is not the deadline to raise the debt limit.
“Tax receipts were as expected for June and July. The fact remains the U.S. will exhaust borrowing authority on August 2nd…and after that date there is no way to guarantee we will be able to meet all of the nation’s obligations.” Read more here:
1:06pm | On MSNBC just now, Gene Sperling, the chairman of the National Economic Council stood by the August 2nd deadline for raising the debt limit. “We know August 2nd is when we run out of borrowing authority,” he said, adding that the full faith and credit of the United States should not be jeopardized by failing to raise the limit by then.
12:59pm | Tea-partiers are “rallying” in Washington today against the Boehner and Reid plans. Among the attendees are Sen. Jim DeMint (R-SC), Rep. Paul Broun (R-GA) and Rep. Reporters estimated there were only a few dozen non-journalists there.
12:08pm | In a closed door meeting this morning, GOP leaders “dressed down” Rep. Jim Jordan and other Republicans opposed to the Boehner plan. They also called for the firing of a top staffer at the conservative Republican Study Committee caught coordinating with right-wing groups to kill the Boehner plan. Read more at Roll Call.
11:54am | Durbin to GOP: “Put your pledges aside”.
11:51am | Reid: “We have compromised”.
11:41am | Boehner spokesman Michael Steel emails in response to the Reid plan’s CBO scoring:
“This report shows the Senate plan for what it is: a grab-bag of gimmicks that gives the President a blank check. In contrast to the bill House Republicans have offered, the Senate Democratic bill counts as ‘savings’ a trillion dollars in war money that would never have been spent – and on top of that, slashes the defence budget in a manner that would hurt our men and women in uniform in a time of war. It relies on smoke and mirrors for half of its ‘savings,’ yet still cuts $500 billion less than promised. In reality, the Reid plan would only save taxpayers about $1 trillion while giving the President the largest debt limit increase in history. Despite previous claims, it significantly falls short of the requirement that we cut more than we increase in the debt limit.”
“For too long Washington has pulled the wool over the eyes of the American people – but those days are over. We have made a promise to cut spending more than we increase the debt limit, and we are revising our legislation to ensure this pledge is met. This debate boils down to two choices: we can continue business as usual in Washington, dressing up legislation with gimmicks and giving a blank check to the President; or we can start making some tough choices to bring down the deficit and hold the President accountable. Today’s report makes clear the House plan is the only one with a pathway to the President’s desk, and we would urge him to sign it.”
11:27am | Sen, Dick Durbin (D-IL) told Bloomberg News this morning that he is confident the Reid plan will succeed, but that it isn’t a done deal yet. “I’m not sure that we’re at 60 and we won’t be until we have a bipartisan agreement.”
10:40am | Speaker of the House John Boehner said “We’re making progress” after the GOP caucus meeting this morning. He did not stop for questions from the press. He is expected to introduced his revised proposal to raise the debt limit and cut the deficit later today.
10:25am | Democratic caucus chair Rep. John Larson (D-CT) says House Democrats encourage President Obama to sign an executive order raising the debt limit under the 14th amendment as opposed to signing a short-term extension under the Boehner plan.
10:19am | Stocks are down big.
10:10am | ” Mark Zandi, chief economist of Moody’s Analytics said on Good Morning America today that it wouldn’t be “the end of the world” if the United States’s credit rating is downgraded. He said it would be possible for the U.S. to regain the rating, if lawmakers “do the right thing” and restore fiscal order to Washington.
9:13am | According to the CBO, over $1 trillion of the savings in the Reid plan come form winding down the wars in Iraq and Afghanistan. Republicans have been critical of including these figures in a deficit reduction proposal, saying they don’t represent new cuts.
9:00am | The Reid plan falls short of the $2.7 trillion advertised because of the switch from the January to March baselines, but still far ahead of Boehner. His plan is about $200 billion short of the GOP demand for 1-to-1 spending cuts to debt limit increase, while Boehner fell $150 billion short for a much shorter extension.
8:48am | For reference, the Boehner plan had only $850 billion in immediate cuts to the deficit using the more unfavorable March baseline. The Reid $2.2 trillion figure is scored on that baseline as well.
8:45am | The Congressional Budget Office has scored Senate Majority Leader Harry Reid’s plan to raise the debt limit, finding it lowers the deficit by $2.2 trillion over 10 years.
Read the full CBO report on the Reid bill here:
8:30am | In a plea to House Republicans to fall in behind the Boehner proposal, GOP Whip Rep. Kevin McCarthy (R-MD) invoked the movie “The Town” yesterday, Bloomberg reports.
“I can’t tell you what it is, you can never ask me about it later, and we’re gonna hurt some people,” the robber says in the scene McCarthy showed to his caucus. His compatriot simply responds, “Whose car we takin’?”
8:16am | In case you missed it: The Boehner plan is being revised today after an unfavorable “score” from the Congressional Budget Office.
This represents a major setback for the talks — but not for the reason you might think.
8:00am | On the agenda today:
- GOP conference meeting at 9 a.m. to shore up support for the new Boehner plan.
- Democrats hold a press conference at 10 a.m. the effects of the debt talks on poor communities.
- Also at 10 a.m., House Democratic caucus leaders will talk to reporters about the debt ceiling.
- Yet another event beginning at 10 a.m.: executives from S&P and Moody’s will testify before the House Financial Services Oversight committee.
- The Senate convenes at 9:30 a.m., and the House at 10 a.m., though neither will consider bills to raise the debt limit today.
- White House Press Secretary Jay Carney will hold a briefing at 1:30.
- Expect members of Congress to be flooding the cable outlets today.
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