Reid Says Talks "Broke Down" Sunday, Offers New Debt Ceiling Plan

Obama, Boehner, Reid

Photo: AP Photo/Charles Dharapak

Talks between congressional leaders to raise the debt limit are going nowhere fast, as the time to reach an agreement ticks away.Hopes for a deal on Sunday night quickly faded, but lawmakers continue to meet at the Capitol.

Read below for what happened yesterday, and click here for the latest.

10:01am | Follow the latest on our Monday live blog here.

11:30pm | President Barack Obama has apparently cancelled two DNC fundraisers Monday as talks to raise the debt limit continue. First reported by CNN, the events in Washington were listed on Obama’s schedule on Friday, but were removed by Sunday night. House Minority Leader Nancy Pelosi was criticised by some Sunday afternoon for a fundraising trip to Connecticut for Rep. Rosa DeLauro (D-CT).

10:23pm | In a tweet, Boehner Communications Director Kevin Smith writes that Obama’s “demand for $2.4T debt limit increase all at once w/o spending cuts that exceed the hike = non-starter.

10:22pm | In a statement House Minority Leader Nancy Pelosi praised the Reid plan, adding “The major features of Senator Reid’s proposal have already been supported by Republicans in the past months”.

8:43pm | Reid’s full statement: “Tonight, talks broke down over Republicans’ continued insistence on a short-term raise of the debt ceiling, which is something that President Obama, Leader Pelosi and I have been clear we would not support. A short-term extension would not provide the certainty the markets are looking for, and risks many of the same dire economic consequences that would be triggered by default itself. Speaker Boehner’s plan, no matter how he tries to dress it up, is simply a short-term plan, and is therefore a non-starter in the Senate and with the President.
“In an effort to reach a bipartisan compromise, we are putting together a $2.7 trillion deficit reduction package that meets Republicans’ two major criteria: it will include enough spending cuts to meet or exceed the amount of a debt ceiling raise through the end of 2012, and it will not include revenues. We hope Speaker Boehner will abandon his ‘my way or the highway’ approach, and join us in forging a bipartisan compromise along these lines.”

8:40pm | Reid says he hopes Boehner abandons his ‘my way or the highway’ approach and will join in a “bipartisan compromise.”

8:36pm | Reid says his plan would not include new revenues.

8:35pm | Reid says Democrats are putting together a $2.7 trillion deficit reduction package.

8:35pm | Reid added: “Boehner’s plan, no matter how he tries to dress it up, is simply a short-term plan” and is a “non-starter” in the Senate.”

8:33pm | Senate Majority Leader Harry Reid said in a statement: “Tonight, talks broke down over Republicans’ continued insistence on a short-term raise of the debt ceiling which is something that President Obama, Leader Pelosi and I have been clear we would not support.”

8:23pm | As the global markets begin to open, and a deal to raise the debt limit remains nowhere in sight, it is going to be a long week. White House Chief of Staff Bill Daley warned today that “We may have a few stressful days coming up — stressful for the markets of the world and the American people.” Hang in there folks.



8:06pm | President Obama and congressional Democrats reportedly agreed not to proceed with any deal that does not raise the debt limit through the end of 2012. Republicans believe Obama/Reid/Pelosi will blink first.

8:05pm | National Journal reports Speaker Boehner is prepared to offer a deal to raise the debt limit for six months, with a second increase contingent on additional spending cuts as proposed by a fiscal commission.

8:04pm | The Nikkei is off just 0.4 per cent.

7:52pm | Obama was also briefed on Reid’s $2.5 trillion deficit reduction plan.

7:47pm | From a White House official: “In the meeting the President received an update on the state of negotiations on the Hill from Leader Pelosi and Leader Reid, and the Leaders and the President reiterated our opposition to a short-term debt limit increase.”

7:40pm | According to reports, Democratic officials discussed their continued opposition to a two-step debt limit increase at today’s White House meeting.

7:39pm | Today’s intrepid White House pool reporter, The Hill’s Sam Youngman, on the state of the negotiations: “DC is a big bag of suck that couldn’t solve a Rubik’s cube if it were all one colour.”

7:13pm | According to the pool report, the White House meeting ended at 7:04.

7:07pm | CNN is reporting that the Republican deficit reduction plan (which would raise the debt limit in to stages) will be released tomorrow.

7:03pm | Gold is surging.

7:00pm | Democratic leadership is still in with Obama and Biden.

6:59pm | House Republicans will caucus tomorrow at 2pm tomorrow. Democrats just scheduled a 5:30 pm meeting.

6:29pm | We’re expecting a statement from Speaker Boehner this evening on the status of the debt talks. It is possible he will include some details on the new GOP debt ceiling proposal. Stay tuned…

6:07pm | The White House meeting began at 5:58, according to the pool report. Attendees are Obama, Vice President Joe Biden, Senate Majority Leader Harry Reid, and House Minority Leader Nancy Pelosi. GOP lawmakers were reportedly not invited.

5:53pm | Sen. Bernie Sanders (I-VT) told a radio host today that Obama has moved to far to the centre in the debt limit negotiations. The liberal firebrand added that “I think it would be a good idea if President Obama faced some primary opposition.” [via ThinkProgress]

5:44pm | The Washington Post has a complete read-out of Boehner’s remarks here.

5:40pm | Boehner and Cantor stressed to GOP congressmen that they have to stick together to maintain their leverage in the negotiations. The focus of the call was on unity — nor a specific deal.

5:38pm | On the call, House Majority Leader Eric Cantor reportedly said: “The President’s position of forcing us to give him a debt limit increase thru the election is purely political and indefensible.”

5:36pm | He added that the White House was “never serious about tackling the serious issues our nation faces-not without tax hikes — I don’t think they ever will.”

5:35pm | Boehner tells his caucus: “here’s the challenge: to stop him (Pres Obama), we need a vehicle that can pass in both houses.”

5:27pm | The Washington Post adds that Boehner told his caucus he continues to push for a $1 trillion short-term deal now, forcing another vote to increase the debt ceiling before the next election. Obama has threatened to veto such a proposal.

5:24pm | Boehner reportedly told members that a deal will not be negotiated with Obama, but within Congress.

5:20pm | Boehner signaling that the GOP’s balanced budget amendment plan is dead may seem to be stating the obvious, by many House Republicans were undoubtedly unhappy to hear that news from their Speaker. As late as Friday, Boehner said “Cut, Cap, and Balance” is the GOP’s only plan to raise the debt limit. 

5:18pm | Boehner reportedly told GOP caucus that he hopes to have a plan to present at a meeting tomorrow at 2 p.m.

5:16pm | Roll Call’s John Stanton reports Boehner acknowledged that the GOP plan “Cup, Cap, and Balance” is dead in the Senate on his call with House Republicans. He said the House must now focus on “what can we pass to protect the country” from POTUS plans. 

5:05pm | It’s worth noting that Democrats and Republicans have different ways of counting deficit cuts. Democrats include savings from the wars in Iraq and Afghanistan, while Republicans do not. It is not clear how Reid will arrive at his $2.5 trillion in cuts.

4:49pm | The White House confirms, Obama and Biden to meet with Reid and Pelosi in the Oval Office at 6 p.m. today.

4:45pm | It is an open question whether House Republicans would agree to a $2.5 trillion plan. All indications are they want substantially more cuts.

4:41pm | Aides tell NBC News’ Kelly O’Donnell that Senate Majority Leader Harry Reid is preparing to move forward with his own plan to raise the debt limit through the end of 2012 and cut the deficit by $2.5 trillion, without new taxes.

4:34pm | CNN is now reporting that only the Democratic leadership will meet with Obama tonight. NBC News adds that GOP leaders were not invited to the meeting.

4:30pm | There appears to be some confusion over whether there is a meeting scheduled at the White House. Boehner’s office says no meeting is scheduled. 

4:18pm | White House meeting at 6pm ET tonight. Boehner-Pelosi-Reid-McConnell will meet with President Barack Obama, CBS News’ Jill Jackson reports.

4:14pm | An aide to Senate Majority Leader Harry Reid says he is ready to move his own proposal through the Senate if Boehner pushes his own deal through the House, according to NBC News.

4:08pm | Speaker of the House John Boehner will brief GOP lawmakers on a 4:30 conference call. NBC News is reporting he will tell his caucus that there is no agreement at this time.

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